Scott Berg, an analyst from Needham, maintained the Buy rating on CS Disco. The associated price target was raised to $10.00.
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Scott Berg has given his Buy rating due to a combination of factors that highlight CS Disco’s strong performance and strategic execution. The company reported impressive third-quarter results, with revenue growth driven by deeper engagement with enterprise clients. Even after excluding a one-time benefit from a contingent case, software revenue continued to grow at a double-digit pace, indicating robust underlying business momentum.
Moreover, CS Disco’s guidance for the fourth quarter suggests an increase in revenue expectations, reflecting confidence in sustained growth. The company’s ability to control expenses effectively has led to a significant upward revision in the adjusted EBITDA guidance. Berg is optimistic about CS Disco’s strategic focus on enterprise accounts and its competitive positioning, which he believes will enable the company to accelerate revenue growth and achieve profitability by the fourth quarter of 2026. Consequently, the price target has been raised to $10, reflecting a valuation of 3.3 times the expected revenue for fiscal year 2025.