Cautious Hold on Lightspeed POS Inc Amid Ambitious Growth Targets and Uncertainty

Morgan Stanley analyst Josh Baer maintained a Hold rating on Lightspeed POS Inc (LSPD – Research Report) today and set a price target of $14.00.

Josh Baer has given his Hold rating due to a combination of factors that reflect both potential and uncertainty in Lightspeed POS Inc’s strategic outlook. The company has ambitious growth targets, aiming for significant increases in both location and gross profit growth by FY28. However, the current lack of evidence for market share gains makes these targets seem overly optimistic, and the market may perceive them as unrealistic.
Moreover, the recent cut in FY25 guidance, following a capital markets day, suggests potential challenges in meeting these growth targets, particularly if this trend continues into FY26. The lack of quarterly transparency further complicates the ability to track progress, as annual disclosures may not provide the timely insights investors seek. Consequently, Baer remains cautious, opting for a Hold rating while reducing estimates and the price target to $14.

In another report released yesterday, UBS also maintained a Hold rating on the stock with a $11.00 price target.