Bank of America Securities analyst Koji Ikeda has maintained their bullish stance on LSPD stock, giving a Buy rating on February 7.
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Koji Ikeda’s rating is based on several compelling factors that suggest a promising outlook for Lightspeed POS Inc. The company’s decision to remain public after its strategic review has resulted in a stock drawdown, which Ikeda views as an attractive risk/reward opportunity. The focus is shifting towards profitable growth, particularly through adjusted EBITDA generation, which is expected to provide upside potential as Lightspeed concentrates on capturing market share in its core segments: North American retail and EMEA hospitality.
Moreover, Lightspeed is strategically investing in its go-to-market and product initiatives to drive growth in these sectors, where there is a significant revenue opportunity estimated at $21 billion. The anticipated expansion of adjusted EBITDA margins, alongside a share repurchase program aimed at minimizing downside risk, further underpins the Buy rating. Additionally, an upcoming Capital Markets Day is expected to provide more clarity on the company’s long-term strategy and financial targets, potentially setting the stage for positive market reactions.
In another report released on February 7, Scotiabank also maintained a Buy rating on the stock with a $21.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LSPD in relation to earlier this year.