LegalZoom upgraded to Overweight from Underweight at JPMorgan

JPMorgan double upgraded LegalZoom (LZ) to Overweight from Underweight with a price target of $9, up from $8. The firm says two factors lead it to be incrementally positive on LegalZoom going into 2025. First, it sees a positive inflection point in overall business formations data. Second, JPMorgan has conviction that management will guide the midpoint of the 2025 adjusted EBITDA range at least 5% above the Street’s estimate. The full-impact of the 2024 reduction in force cost savings is nor modeled into investor expectations, the analyst tells investors in a research note. JPMorgan also placed LegalZoom on “Positive Catalyst Watch,” expecting management to guide 2025 ahead of the Street for profitability during its Q4 earnings release.