Analysts rate Lightspeed POS Inc. (LSPD:CA:TSX) with a Strong Buy, $58 Target

STA Research
by: STA Research

Analysts rate Lightspeed POS Inc. with a consensus Strong Buy rating and a 12-month average target price of CAD 57.83 per share.

STA Research maintains Lightspeed POS Inc.  with a Buy rating, and keeps the target of $50 on the company’s stock.  

Based on the Lightspeed POS Inc. stock forecasts from 13 analysts, the average analyst target price for Lightspeed POS Inc. is CAD 57.83 over the next 12 months. Lightspeed POS Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Lightspeed POS Inc. is Slightly Bullish, which is based on 4 positive signals and 3 negative signals. At the last closing, Lightspeed POS Inc.’s stock price was CAD 30.16. Lightspeed POS Inc.’s stock price has changed by +0.20% over the past week, -8.75% over the past month and -64.56% over the last year.

Lightspeed Commerce Inc. provides commerce-enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montréal, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

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