CS Disco plunges on FY revenue forecast cut

CS Disco

12/08/2022 14:00

** CS Disco Inc  LAW.N  tumbles 34.6% to $18.93 premarket
after the legal software firm cuts its FY revenue forecast  
    ** At current levels, stock set for a 6-week low if declines
hold till open 
    ** Co now expects FY revenue between $132 mln and $136 mln,
down from a previous forecast of $149 mln and $153 mln
 urn:newsml:reuters.com:*:nBw1rGG07a 
    ** At least five analysts cut their PTs for the stock, with
three of them issuing "hold" ratings 
    ** Cowen says LAW cited weaker consumption from a handful of
large customers using its Doc Review offering, which raises
concerns of near-term consumption trends and large deal
dependence; cuts PT to a Street low of $20 from $35 
    ** "We believe the revenue guide down and management
commentary on revenue predictability could put into question the
stability of the future growth profile" - BofA Global Research 
    ** As of Thursday's close, LAW had fallen nearly 19% YTD

 (Reporting by Shreyashi Sanyal)
 ((Shreyashi.Sanyal@thomsonreuters.com))