LegalZoom hits record low after FY revenue forecast cut, sudden CEO change

LegalZoom.com

10/07/2024 14:53

(Updates)
    ** Shares of online legal services company LegalZoom.com
 LZ.O  plummet 30.5% to $5.45 - hitting their lowest level on
record and set for their worst day
    ** Co cuts FY24 revenue forecast to $675-$685 mln from
$700-$720 mln previously; names Jeffrey Stibel as new CEO,
effective immediately
    ** BofA Global Research double downgrades the stock to
"underperform" from "buy" on expectations that growth could
remain muted through FY24, more than halves PT to $6 from $13
    ** JPM downgrades to "neutral" from "overweight", cuts PT to
$9 from $14; says CEO transition signals newfound operational
troubles, compromising hopes of improved results
    ** Jefferies says CEO's sudden departure adds "more moving
parts" to co's evolution and forecast trim raises doubts on
ability to navigate tough macro conditions, cuts PT to $8 from
$12
    ** One brokerage rates stock "strong buy," 5 "hold" and 2
"sell"; median PT at $8 - LSEG data
    ** Stock down over 50% YTD

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))