Citi Upgrades PT on LegalZoom.com From $10 to $12, Keeps Neutral Rating on the Stock

LegalZoom.com Inc. (NASDAQ:LZ) is one of the 14 Best Small Cap Stocks to Buy Right Now. On August 25, Citi upgraded the price target on LegalZoom.com Inc. (NASDAQ:LZ) from $10 to $12, keeping its Neutral rating on the stock.

Citi analyst Ronald Josey raised the price target post the second quarter FY2025 earnings, which reflected robust subscription revenue. LegalZoom posted $192.5 million in revenue, exceeding the estimated $182.70 million and growing 9% year-over-year. Josey sees LegalZoom’s subscription strategy to be working well for the company, with improvements in product packaging, pricing, and personalization leading to higher engagement, especially in compliance-related services. LegalZoom’s management also attributed the robust quarterly performance to strong adoption of new compliance-focused offerings and improvement to the firm’s bundled subscription tiers.

In line with its strong performance and strategic developments during Q2, LegalZoom.com Inc. (NASDAQ:LZ) announced the expansion of its intellectual property legal services to include patent filings through LegalZoom’s law firm, LZ Legal Services, on August 19. The company’s law firm will offer affordable patent protection via intelligent technology and licensed patent attorneys at low costs compared to traditional fees.

The demand for IP protection is at an all-time high. Considering the need for accessible and cost-effective patent solutions, LegalZoom is reconceptualizing the provisional patent application filing experience. This new idea is to make the application filing faster, simpler, and more affordable than before.

As of September 5, LegalZoom.com Inc.’s (NASDAQ:LZ) average price target of $12, based on analysts’ estimates, implies an upside of nearly 16.28% from current levels.

LegalZoom.com Inc. (NASDAQ:LZ), through its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of SMEs and consumers in the U.S.

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Disclosure: None. This article is originally published at Insider Monkey.