Benzinga | Sep 3, 2021 12:43PM EDT

CS Disco's Q2 Performance On Public Debut Wins Analyst Confidence

* CS Disco Inc (NYSE:LAW) reported Q2 revenue of $29.5 million, up 88% year-on-year. It sees Q3 revenue between $25.5 million - $25.9 million.

* Analysts praise CS Disco's impressive first earnings on public debut with strong guidance reflecting potential gain from the demand recovery.

* Needham analyst Scott Berg raised the PT to $70 from $60, implying a 19.8% upside, and reiterated a Buy.

* BofA analyst Koji Ikeda raised the PT to $70 from $60 and affirmed a Buy.

* He continues to see Disco being well-positioned to disrupt a large total addressable market, giving it a long-tail to deliver above SaaS industry growth.

* Loop Capital analyst Yum Kim raised the PT to $75 from $60, signifying a 28.4% upside, and maintained a Buy. Kim notes that its first reported quarter as a public company was "strong" while its raised guidance reflected accelerating business momentum.

* CS Disco saw its core business accelerate, its product attach rate improve, its international expansion increase, its new customer adds remaining strong, and expansion velocity improving.

* Citi analyst Tyler Radke raised the PT to $74 from $67, indicating a 26.7% upside, and reiterated a Buy. Radke notes that the outlook reflects "typical conservatism to establish a beat-and-raise cadence as a recent IPO," Radke notes.

* He sees CS Disco's "strong" usage trends and new logo momentum persisting into the second half of 2021.

* Price Action: LAW shares traded higher by 0.29% at $58.59 on the last check Friday.