BofA Securities analyst Michael McGovern upgraded LegalZoom.com Inc (NASDAQ: LZ) from Underperform to Buy with a price target of $12.00 (from $8.00).

The analyst comments "We upgrade LZ from Underperform to Buy as mgmt. has executed a substantial portion of the shift toward Subscriptions, while also adding strategic AI collaborations. LZ can likely sustain double-digit subscription revenue well into next year, as revenue growth has significantly exceeded our expectations. Accelerating growth given already-strong 20%+ EBITDA margins could warrant multiple expansion given the discounted multiple. We also see no slowdown in strong FCF trajectory."

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Shares of LegalZoom.com Inc closed at $8.37 yesterday.