LegalZoom slumps after FY revenue forecast cut, sudden CEO change

LegalZoom.com

10/07/2024 09:40

** Shares of online legal services company LegalZoom.com
 LZ.O  slide 17.5% to $6.48 premarket
    ** Co cuts FY24 revenue forecast to $675-$685 mln from
$700-$720 mln previously
    ** Jeffrey Stibel appointed as new CEO, effective
immediately, replacing current CEO Dan Wernikkoff
    ** JPM downgrades LZ 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
    ** Three brokerages rate stock "buy" or higher, 4 "hold" and
1 "sell"; median PT at $13 - LSEG data
    ** Stock down over 30% YTD, till last close

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