The Globe and Mail reports in its Saturday edition that National Bank Financial analysts Richard Tse and John Shao rate Lightspeed Commerce "outperform," with $40 share target (all figures U.S.). The Globe's David Leeder writes that analysts on average target the shares at $30.29.
Mr. Tse says in a note: "In our view, the sell-off in Lightspeed has been overdone particularly for a company growing 30 per cent year-over-year while operating at near breakeven with a viable path to profitability. At the time of writing, LSPD is trading at 1.7 times calendar 2023 sales. ... In terms of the company's path to profitability, LSPD has a number of levers to pull to gain operating efficiencies including (1) savings from the consolidation of its platform into its flagship hospitality and retail offerings where there's a potential to benefit from the freeing up of 30 per cent of its engineering resources currently dedicated to its legacy offerings; (2) flagship products decreasing onboarding time and training costs; and (3) growing scale that is expected to offer better terms for payments and hosting costs." The Globe reported on Jan. 13 that Stifel analyst Suthan Sukumar rated Lightspeed "hold," when it was worth $15.87.
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