JPMorgan raised its price target on LegalZoom.com (NASDAQ:LZ) to $12 from $11 and added the stock to its Analyst Focus List, maintaining an Overweight rating as it sees room for outperformance in both revenue and earnings.

The firm believes LegalZoom is well-positioned to exceed Street expectations, citing accelerating subscription revenue growth through 2025 and a strategic transformation that strengthens its long-term defensibility.

Valuation remains a key part of the bullish thesis: shares trade at just 7x 2026E EV/EBITDA—well below comparable SMB-focused tech firms like GoDaddy and Wix, which trade at 15x and 16x, respectively.

JPMorgan anticipates that as the company executes on its growth strategy and investor confidence builds, the valuation gap with peers will narrow, potentially driving a re-rating in the stock.