BofA cuts CS Disco to Underperform on uncertain demand for high revenue product

BofA analyst Koji Ikeda downgraded CS Disco to Underperform from Neutral with a price target of $5, down from $12. The analyst is citing "low model visibility" on the stock due to uncertain demand for its higher revenue generating products, which could result in "lumpy" quarterly results. Unpredictable upside from potential large legal matters is not likely to be a catalyst for multiple expansion in CS Disco, and the stock is more likely to be valued at "what its minimum consistent growth profile should be", Ikeda tells investors in a research note.