Investing.com -- Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: Chegg's downgrade after a disastrous guidance announcement, as well as three more downgrades: for Coinbase, Shoals, and Walker & Dunlop.
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Chegg downgraded to Hold, shares plummet following Q1 results
Jefferies downgraded education tech company Chegg (NYSE:CHGG) to Hold from Buy and dramatically cut its price target, to $11 from the prior $25. Goldman Sachs slashed Chegg's price target, as well, to $14.
Shares of the company plunged more than 44% pre-market today after the company reported worse-than-expected Q2 guidance and said that, given weak visibility, it is not providing guidance beyond 2Q.
Management noted that since March the company has seen a significant spike in student interest in ChatGPT, and now believes it’s having an impact on new customer growth rates.
Jefferies believes any impact from CheggMate (Chegg's AI product) is likely multiple quarters away, adding that shares are fairly valued with no growth and existential fears from AI.
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Coinbase downgraded to Neutral ahead of Q1 earnings
Coinbase (NASDAQ:COIN) shares fell more than 1% pre-market today (followed by a 6% loss yesterday) after Citi downgraded the company to Neutral from Buy and cut its price target to $65.00 from $80.00.
The firm sees a lot of regulatory uncertainty surrounding the Coinbase story. It maintains a positive outlook on a "category leader" that is well-positioned for potential integration with traditional finance, despite regulatory concerns. However, as Coinbase assumes the responsibility of advocating for a reputationally damaged industry and establishing a sustainable path to regulatory compliance, Citi believes that greater regulatory clarity is necessary before increasing its optimism toward the stock.
The company is set to report its Q1/23 earnings Thursday after the market close.
2 more downgrades
Barclays downgraded Shoals Technologies (NASDAQ:SHLS) to Underweight from Equalweight and cut its price target to $19.00 from $27.00. Shares fell nearly 4% pre-market today.
The company will report its Q1/23 earnings on May 8.
JMP Securities downgraded Walker & Dunlop (NYSE:WD) to Market Perform from Market Outperform.
Earlier this month, the company announced its plans for a workforce reduction of approximately 8%.
The company is set to report its Q1/23 on Thursday before the market opens.
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