Wall Street could be overlooking LegalZoom’s growth prospects, according to JPMorgan. “LegalZoom appears to be undergoing a cultural and business transformation, which supports longer-term earnings expectations, multiple expansion, and ultimately the attractiveness of the shares at these levels,” analyst Ella Smith wrote in a Monday note. Smith and her team recently hosted LegalZoom’s executives for a nondeal roadshow, gleaning details on what’s next for the company. LegalZoom’s services include guiding entrepreneurs as they set up limited liability companies, helping individuals draft estate plans and connecting users with lawyers. JPMorgan reiterated its overweight rating on the online legal services stock, and raised its price target to $12 per share from $11. JPMorgan’s forecast implies more than 29% upside from Friday’s $9.29 close. LZ YTD mountain LegalZoom stock in 2025. The firm also added the stock to its analyst focus list. LegalZoom is “a growth pick on our higher conviction for revenue growth acceleration in 2026E, which is not fully appreciated in current market estimates,” Smith wrote. She said the company could also surpass Wall Street’s expectations for free cash flow and revenue growth. “The Street currently models revenue growth of 7% in 2026E, implying a mere 2 point acceleration versus this year,” the analyst said. “While the company has not published revised financial targets, management has said they expect to continue their margin expansion trajectory in 2026E.” Shares have advanced nearly 25% so far in 2025, while the S & P 500 has ticked up about 1%.
