The reduction in price target by Jefferies from $10 to $7 indicates a negative outlook on Chegg's stock price in the short term. This adjustment reflects analyst Brent Thill's assessment of Chegg's valuation, potentially due to anticipated challenges or underperformance. As price targets are influential in shaping investor expectations and market sentiment, this downward revision is likely to exert downward pressure on Chegg's stock price in the short term.