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Investing.com - JPMorgan has reiterated its Overweight rating and $12.00 price target on LegalZoom.com Inc (NASDAQ:LZ) following the company’s recent earnings report. According to InvestingPro data, the company appears undervalued compared to its Fair Value, with impressive gross profit margins of 66%.
LegalZoom shares have surged 28% since reporting earnings on August 7, significantly outperforming the S&P 500’s less than 1% gain during the same period.
The company recently raised its 2025 revenue growth guidance from 5% to 8% year-over-year, which has attracted investor interest and contributed to the stock’s strong performance.
JPMorgan attributes LegalZoom’s improved outlook to a strong macro environment and enhanced productivity within the company’s internal fulfillment engine.
The firm believes the increase in LegalZoom’s share price primarily reflects higher earnings expectations rather than multiple expansion.
In other recent news, LegalZoom.com Inc reported its second-quarter earnings for 2025, with revenue surpassing forecasts. The company posted revenue of $192.5 million, exceeding the expected $182.72 million by 5.35%, while earnings per share aligned with predictions at $0.15. In addition to the earnings report, LegalZoom announced the expansion of its intellectual property services to include patent filings, offering attorney-assisted provisional patent application services at a fraction of traditional costs. UBS has raised its price target for LegalZoom to $12, maintaining a Neutral rating, due to accelerating subscription growth, which reached 22% in the second quarter of 2025. BofA Securities upgraded LegalZoom’s stock rating from Underperform to Buy, also raising its price target to $12, citing the company’s successful strategic shift toward subscription-based services. The firm acknowledged LegalZoom’s strategic artificial intelligence collaborations as a contributing factor. Meanwhile, JMP Securities reiterated its Market Perform rating on LegalZoom, noting the company’s strong brand position amidst competitive pressures. These developments highlight LegalZoom’s ongoing efforts to innovate and grow its subscription services.
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