CS Disco’s Strategic Positioning and Revenue Growth Drive Buy Rating

In a report released today, Scott Berg from Needham maintained a Buy rating on CS Disco (LAW – Research Report), with a price target of $8.00.

Scott Berg has given his Buy rating due to a combination of factors that highlight CS Disco’s improving performance and strategic positioning. The company reported strong first-quarter results, which are seen as a turning point for revenue growth in fiscal year 2025. This improvement is attributed to the company’s ability to secure larger matters, leading to more stable and predictable revenue streams.
Furthermore, the recent changes in the go-to-market strategy, although still in the early stages, are beginning to yield positive results. The management’s decision to slightly raise the fiscal year 2025 guidance reflects a more conservative approach and increased clarity regarding significant deals. Additionally, the company’s recent execution boosts confidence in achieving its goal of break-even adjusted EBITDA by the fourth quarter of 2026.