BofA Securities Double Downgrades LegalZoom.com Inc (LZ) to Underperform

BofA Securities analyst Michael McGovern downgraded LegalZoom.com Inc (NASDAQ: LZ) from Buy to Underperform with a price target of $6.00 (from $9.00).

The analyst comments "LegalZoom reported revenue of $195.1mn vs. Street at $193.6mn, with Formations at 110k (below Street at 113k) due to AI still pressuring top-of-funnel formations. Gross profit at $143.1mn was above BofAe at $140.0mn, and $50.0mn in EBITDA slightly above Street at $49.9mn. 4Q guide for Rev/EBITDA was $190-196mn/$48-53mn vs. Street at $194mn/$60mn for 4Q. The rev. guide midpoint translates to growth of only 1% y/y and mgmt. plans to increase S&M spend for AI advertising placements."

For an analyst ratings summary and ratings history on LegalZoom.com Inc click here. For more ratings news on LegalZoom.com Inc click here.

Shares of LegalZoom.com Inc closed at $6.90 yesterday.

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