LegalZoom downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Ella Smith downgraded LegalZoom (LZ) to Underweight from Neutral with an $8 price target following the Q3 report. LegalZoom’s business formation share is relatively consistent, subscription revenue is holding up better than expected, and profitability is supported by recent optimizations, the analyst tells investors in a research note. The firm says that while the company reported a solid quarter, it foresees at least a year-long process in which LegalZoom refines and redefines its operations. “Undergoing this venture would be rewarding for LegalZoom, but very unlikely to transpire quickly,” contends JPMorgan.