Loading...
Back to narrative

LAW: Expanded Partnership And 2025 Guidance Will Support Balanced Outlook

Cloud Native AI Legal Tech Will Transform Global Markets

LAW logo
LAW
AnalystConsensusTarget
Not Invested
Published 31 Mar 2025

Update shared on 05 Dec 2025

Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
41.2%
7D
1.1%

Analysts have modestly raised their price target on CS Disco to reflect a slightly richer valuation framework, citing incremental adjustments to the discount rate, long term margin assumptions, and forward earnings multiples that, while still consistent with prior fair value estimates, suggest a marginally improved outlook for the shares.

What's in the News

  • Issued new earnings guidance for the fourth quarter of 2025, projecting total revenue between $38.75 million and $40.75 million (Company guidance)
  • Provided full year 2025 revenue outlook in the range of $154.4 million to $156.4 million, signaling continued top line growth expectations (Company guidance)
  • Expanded its strategic eDiscovery and technology partnership with Mourant, deepening DISCO's role in supporting the firm's litigation and consulting teams with AI driven review capabilities (Client announcement)

Valuation Changes

  • The fair value estimate is unchanged at $7.40 per share, indicating no revision to the intrinsic value assessment.
  • The discount rate has risen slightly from 8.45 percent to 8.47 percent, reflecting a modestly higher required return.
  • The revenue growth assumption is effectively unchanged at approximately 9.15 percent, implying a stable top line outlook.
  • The net profit margin has edged down slightly from 12.73 percent to 12.69 percent, pointing to a marginally more conservative profitability profile.
  • The future P/E multiple has risen slightly from 25.76x to 25.87x, suggesting a modestly richer valuation applied to forward earnings.

Have other thoughts on CS Disco?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.