Citi Upgrades PT on LegalZoom.com From $10 to $12, Keeps Neutral Rating on the Stock

Core Insights - LegalZoom.com Inc. (NASDAQ:LZ) has been identified as one of the 14 best small-cap stocks to buy currently, with Citi upgrading its price target from $10 to $12 while maintaining a Neutral rating [1][3]. Financial Performance - LegalZoom reported Q2 FY2025 earnings with revenue of $192.5 million, surpassing estimates of $182.7 million, reflecting a year-over-year growth of 9% [2]. - The company's subscription strategy is yielding positive results, with enhancements in product packaging, pricing, and personalization leading to increased customer engagement, particularly in compliance services [2]. Strategic Developments - On August 19, LegalZoom expanded its intellectual property legal services to include patent filings through its law firm, LZ Legal Services, offering affordable patent protection using intelligent technology and licensed patent attorneys [3]. - The demand for intellectual property protection is at an all-time high, prompting LegalZoom to innovate the provisional patent application filing process to make it faster, simpler, and more affordable [4]. Market Outlook - As of September 5, the average price target for LegalZoom is $12, indicating a potential upside of approximately 16.28% from current levels [4]. - LegalZoom operates an online platform catering to the legal, compliance, and business management needs of SMEs and consumers in the U.S. [5].