The Analyst Landscape: 6 Takes On CS Disco

During the last three months, 6 analysts shared their evaluations of CS Disco (NYSE:LAW), revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $12.08, a high estimate of $15.00, and a low estimate of $7.50. This upward trend is evident, with the current average reflecting a 12.37% increase from the previous average price target of $10.75.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive CS Disco. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CS Disco. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CS Disco compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of CS Disco's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of CS Disco's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Delving into CS Disco's Background

CS Disco Inc provides a cloud-native, artificial intelligence-powered legal solution that simplifies discovery, legal document review, and case management for enterprises, law firms, legal services providers, and governments. Its revenue-generating activities directly relate to the sale and support of legal solutions. It has two primary types of contractual arrangements: usage-based and subscription solutions. The usage-based revenue is derived from contracts under which customers are billed monthly based on their usage. Subscription revenue is derived from contracts where customers are contractually committed to a minimum data volume over a period of time.

CS Disco: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, CS Disco showcased positive performance, achieving a revenue growth rate of 9.85% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: CS Disco's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -16.34%, the company may face hurdles in effective cost management.

Return on Equity (ROE): CS Disco's ROE stands out, surpassing industry averages. With an impressive ROE of -2.91%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): CS Disco's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.53%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.05, CS Disco adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.