Needham analyst Scott Berg has maintained their bullish stance on LAW stock, giving a Buy rating on August 6.
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Scott Berg has given his Buy rating due to a combination of factors that highlight CS Disco’s promising growth trajectory. After recent meetings with the company’s management, including the CEO and CFO, Berg is optimistic about Disco’s potential to achieve high growth levels. The company’s strategic changes in its go-to-market approach and the increasing productivity are key elements that bolster this outlook.
Furthermore, the introduction of the Cecilia AI platform presents a compelling value proposition, positioning Disco to capitalize on a significant market opportunity that is currently underserved. Berg also notes that targeting large, underpenetrated customers could enhance the company’s net revenue retention rate beyond 100%, aiming for a target between 110% and 115%. This, coupled with a feasible revenue target at a 50% contribution margin, supports the company’s goal of reaching adjusted EBITDA breakeven by the fourth quarter of 2026.
In another report released on August 6, Canaccord Genuity also maintained a Buy rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LAW in relation to earlier this year.