Chegg downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Chegg (CHGG) to Underweight from Neutral without a price target Chegg is facing secular headwinds and pressure across traffic from generative artificial intelligence competition, and the company is undergoing a strategic review, the analyst tells investors in a research note. The firm believes economic weakness could drive incremental demand headwinds as students prioritize earning secondary sources of income during a softer economic environment, especially given Chegg’s “more transient customer base.”