LegalZoom price target lowered to $8 from $9 at JPMorgan

JPMorgan lowered the firm’s price target on LegalZoom to $8 from $9 and keeps a Neutral rating on the shares. There is an investor debate whether the 5M-plus per year business formation figures from 2021 to 2023 are sustainable, or if business formations are doomed to the 2.6M per year run-rate seen from 2005 to 2015, the analyst tells investors in a research note. The firm says that even with the prospect of interest rate cuts beginning this month, it does not expect the deteriorating business formation macro, which is down 5% versus the year-ago period, to reverse positively. It updated its macro and LegalZoom business formation expectations in 2024 and beyond, resulting in reduced 2025 revenue expectations.