Legalzoom.com (LZ) Stock Forecast & Price Target
Legalzoom.com (LZ) Analyst Ratings
Bulls say
LegalZoom.com Inc is demonstrating a stable subscriber retention rate of 63% as of December 2024, indicating a strong customer base for its diverse range of legal and compliance services. The company is effectively driving growth in subscription units through strategic bundling of its offerings, including e-signature and accounting solutions, which enhances customer engagement and drives upsell opportunities. Furthermore, LegalZoom's unique position as the initial service utilized by approximately one-third of its business formation customers creates significant long-term value, positioning the company favorably within a competitive marketplace.
Bears say
LegalZoom.com Inc has experienced a notable decline in website traffic, with a 23% year-over-year drop in February, reflecting a broader trend in the business registration sector that saw an 18% decline in traffic among top competitors. Projections indicate that LegalZoom's business formations may decrease by 5.5% year-over-year in the first quarter of 2025, driven by a contraction in overall business applications and intensified competition. Additionally, the company's reliance on small and medium-sized businesses (SMBs) leads to higher customer churn, coupled with increasing advertising costs and a pricing structure that limits revenue generation, creating fundamental challenges for growth.
This aggregate rating is based on analysts' research of Legalzoom.com and is not a guaranteed prediction by Public.com or investment advice.
Legalzoom.com (LZ) Analyst Forecast & Price Prediction
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