BofA double upgrades LegalZoom to Buy on successful shift toward subscriptions

As previously reported, BofA upgraded LegalZoom (LZ) to Buy from Underperform with a price target of $12, up from $8. Management has executed a substantial portion of the shift toward subscriptions, while also adding strategic AI collaborations, and can likely sustain double-digit subscription revenue well into next year, the analyst tells investors. Accelerating growth given already-strong EBITDA margins could warrant multiple expansion, the analyst argues.