
LegalZoom Inc. surged roughly 30% in pre-market trading after the online legal-services company posted stronger-than-expected second-quarter results and lifted its full-year revenue outlook. Bank of America responded with a rare two-notch upgrade, raising the stock to Buy from Underperform and lifting its price target to $12 from $8. The bank credited management’s faster-than-anticipated shift to a subscription-based model and new artificial-intelligence partnerships for improving growth visibility. LegalZoom said subscription revenue, which had been flat, is now growing at double-digit rates, prompting the firm to increase its 2025 revenue growth forecast. Analysts at BofA said the momentum positions the company to sustain higher margins and expand its customer base.
BofA Upgrades $LZ to Buy from Underperform, Raises PT to $12 from $8 Analyst comments: "We upgrade LegalZoom from Underperform to Buy as management has executed a substantial portion of the shift toward subscriptions while also adding strategic AI collaborations. We believe LZ
Legal Zoom + AI $LZ https://t.co/7aDZwAWyUc
People have been sleeping on $LZ one of our newer positions here. People waking up to them. Double upgrade from BofA. From flat subscription revenue to double digit. Kudos to the team there! https://t.co/ypyBmqBrzx
