Analyst Scott Berg of Needham maintained a Buy rating on CS Disco (LAW – Research Report), retaining the price target of $8.00.
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Scott Berg’s rating is based on CS Disco’s strong performance in the recent quarter, where revenue was at the upper end of company projections and adjusted EBITDA significantly exceeded expectations. The company’s cautious approach to fiscal year 2025 guidance reflects confidence in the ongoing success of recent go-to-market strategy adjustments, aligning with consensus forecasts for revenue and adjusted EBITDA.
Furthermore, the enterprise-focused sales strategy is beginning to show promise, with expectations for improved clarity as new sales compensation plans are rolled out, emphasizing attention on large clients. Additionally, the company’s goal to achieve breakeven adjusted EBITDA by the fourth quarter of 2026 appears achievable with a balanced growth strategy, contingent on accelerating revenue growth. These factors contribute to Scott Berg’s confidence in issuing a Buy rating for CS Disco.
According to TipRanks, Berg is an analyst with an average return of -2.2% and a 45.29% success rate. Berg covers the Technology sector, focusing on stocks such as Salesforce, Five9, and SPS Commerce.