NEW YORK (TheStreet) -- Shares of Chegg Inc. (CHGG) closed down 3.81% to $6.32 after the company's price target, annual revenue estimates and EPS estimates were lowered at Bank of America/Merrill Lynch.
The firm reiterated its "buy" rating for the online textbook rental services company and cut the price target to $7.25 from $8.
Bank of America/Merrill Lynch also reduced annual revenue estimates to $303.8 million from $312.6 million for fiscal 2014, to $368.7 million from $397.1 million for fiscal 2015, and to $421 million from $468.9 million for fiscal 2016.
Additionally, the firm lowered annual EPS estimates to -28 cents from -27 cents for fiscal 2014, to 11 cents from 29 cents for fiscal 2015, and to 29 cents from 57 cents for fiscal 2016.
"The lack-luster growth of Print is disappointing, but Print is likely to remain steady state from here and focus will likely now shift back to the rapid growth and strong gross margin (61% in 3Q) of Digital," said Bank of America/Merrill Lynch analyst Nat Schindler.CHGG data by YCharts