CS Disco downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded CS Disco to Underweight from Neutral with a price target of $5, down from $8. The analyst sees a “challenging setup with multiple headwinds ahead.” The company’s fundamentals have been deteriorating since the ex-CEO and Founder’s exit in September 2023, the analyst tells investors in a research note. The firm says that new leadership is driving a focus toward improving sales execution and rebuilding client success teams, the combination of decelerating growth, lack of profitability, cash burn and elevated execution risk point to an unfavorable risk/reward for the shares.