Lightspeed Commerce Inc Stock Analysis:
STA Research maintains Lightspeed Commerce Inc with a Buy rating and lowers the target price to $30 from $39 on the company’s stock.
CIBC maintains the Outperform rating on Lightspeed Commerce Inc and cuts the target price to $40 from $67.
Based on the Lightspeed Commerce Inc stock forecasts from 12 analysts, the average analyst target price for Lightspeed Commerce Inc is CAD 45.00 over the next 12 months. Lightspeed Commerce Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Lightspeed Commerce Inc is Neutral, which is based on 4 positive signals and 4 negative signals. At the last closing, Lightspeed Commerce Inc’s stock price was CAD 22.34. Lightspeed Commerce Inc’s stock price has changed by -6.02% over the past week, -11.87% over the past month and -85.43% over the last year.
About Lightspeed Commerce Inc (LSPD:CA:TSX)
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, Australia, the Netherlands, and internationally. Its SaaS platform enables customers to engage with consumers, manage operations, accept payments, etc. The company’s cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers’ efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Analytics; Lightspeed Payments; and Lightspeed Capital, a merchant cash advance program. In addition, it sells POS peripheral hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. 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.
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
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
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.
The company had negative total cash flow in the most recent four quarters.
Negative free cash flow
The company had negative total free 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.