LegalZoom price target raised to $8.50 from $7 at Citi

Citi raised the firm’s price target on LegalZoom (LZ) to $8.50 from $7 and keeps a Neutral rating on the shares. The analyst believes the main focus for management going forward is building a higher quality share of business formations and a more durable and higher margin subscription business. While still early on both, management noted progress, the analyst tells investors in a research note. Citi believes LegalZoom’s focus on more efficient customer acquisition and shifting its business towards its high margin subscription offering should lead to expanding margins going forward. It is incrementally positive on the shares, but stays Neutral due to macro headwinds and executional risk.