UBS Reiterates Neutral Rating on LegalZoom.com Inc (LZ)

UBS analyst Stephen Ju reiterated a Neutral rating and $9.00 price target on LegalZoom.com Inc (NASDAQ: LZ).

He said, "With LZ pre-announcing its results, reported revenue came in at $161.7 million at the high-end of its guidance range of $158 million - $162 million and modestly ahead of the Street at $160.7 million but just below UBSe at $162.4 million. Adjusted EBITDA landed at $44.2 million and also at the high-end of its guidance range of $40 million - $44 million and modestly ahead of the Street at $42.9 million but in-line with our pre-print estimate of $44.4 million...The likely reason for the update was the concurrent announcement that it has acquired Formation Nation, which operates "Inc Authority" for ~$64.75 million in cash ($49.3 million upfront and $15.4 million on one-year holdback) and 2.2 million shares of LZ stock, in a total transaction value of ~$85 million (based on today's closing price of $9.22 per LZ share). At first glance, given Inc Authority's value proposition centered on lower-cost business formation, this transaction seems like it was designed to expand Legalzoom's customer acquisition funnel."

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 $9.22 yesterday.

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