In a report released yesterday, Koji Ikeda from Bank of America Securities reiterated a Buy rating on Lightspeed POS Inc, with a price target of $16.00.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Koji Ikeda’s rating is based on Lightspeed POS Inc’s strong performance and strategic execution. The company reported impressive first-quarter results for fiscal year 2026, with revenue and adjusted EBITDA surpassing expectations. This performance indicates that Lightspeed is on track with its three-year strategic plan, aiming for a 35% compound annual growth rate in adjusted EBITDA. The company’s revenue growth potential is promising, particularly as its go-to-market strategy gains momentum, which could serve as a catalyst for further growth.
Additionally, Lightspeed’s expansion in net-new locations and its focus on increasing sales capacity are encouraging signs. The company added 1,700 new locations in the quarter, aligning with its goal of a 10-15% growth in net-new customers over three years. Furthermore, investments in technology to enhance average revenue per user (ARPU) are yielding positive results, with software ARPU growing by 10% year-over-year. The introduction of advanced features and increased payments monetization are expected to drive further revenue growth. These factors, combined with a valuation premium justified by its growth strategy, support the Buy rating with a price objective of $16 USD.
Ikeda covers the Technology sector, focusing on stocks such as Datadog, Gitlab, and Onestream, Inc. Class A. According to TipRanks, Ikeda has an average return of 12.6% and a 58.15% success rate on recommended stocks.
In another report released today, BTIG also maintained a Buy rating on the stock with a $16.00 price target.