In a report released yesterday, David Hynes from Canaccord Genuity maintained a Buy rating on CS Disco, with a price target of $9.00.
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David Hynes has given his Buy rating due to a combination of factors that highlight CS Disco’s promising performance and strategic direction. The company has demonstrated solid execution in its go-to-market strategy, particularly in targeting larger, more complex enterprise customers. This shift has resulted in significant growth in software revenue, which increased by 12% year-over-year, marking the highest quarterly growth rate since the firm began disclosing segment revenue.
Additionally, CS Disco has shown a consistent pattern of beating guidance and raising full-year estimates, which is a positive indicator for investors. The company’s focus on customers with higher annual spending and the increase in multi-terabyte matters on its platform suggest a growing and more profitable customer base. Despite the challenges, the stock appears undervalued, trading at approximately 1x EV/R on 2026 estimates, and if the company continues to execute its strategic objectives, it could potentially achieve a growth rate of over 20% as envisioned by the CEO. These factors collectively support the Buy rating, with the expectation of continued positive performance in the upcoming quarters.
In another report released today, Needham also maintained a Buy rating on the stock with a $8.00 price target.
Based on the recent corporate insider activity of 37 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.