These Analysts Slash Their Forecasts On LegalZoom

LegalZoom.com, Inc. LZ announced a CEO transition and lowered its full year guidance on Tuesday.

LegalZoom announced its current CEO Dan Wernikoff is stepping down and resigning from the company’s board of directors. The company said the Board of Directors Chairman, Jeffrey Stibel, was named LegalZoom's next CEO, effective immediately.

LegalZoom also cut its revenue guidance for the full year to a range of $675 million to $685 million, versus the $710.353 million estimate, and its free cash flow expectation for the full year to a range of $75 million to $85 million.

The company reiterated its second-quarter revenue guidance to be in the range of $172 million to $176 million and adjusted EBITDA in the range of $25 million to $27 million.

LegalZoom shares dipped 29.1% to trade at $5.56 on Wednesday.

These analysts made changes to their price targets on LegalZoom after the company reported quarterly results.

• B of A Securities analyst Michael McGovern downgraded LegalZoom.com from Buy to Underperform and lowered the price target from $13 to $6.
• JP Morgan analyst Ella Smith downgraded LegalZoom.com from Overweight to Neutral, while cutting the price target from $14 to $9.
• JMP Securities analyst Andrew Boone downgraded the rating for LegalZoom.com from Market Outperform to Market Perform.

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