Thanos Moschopoulos, an analyst from BMO Capital, maintained the Buy rating on Lightspeed POS Inc (LSPD – Research Report). The associated price target was lowered to $14.00.
Thanos Moschopoulos has given his Buy rating due to a combination of factors including Lightspeed POS Inc’s strategic refocus on targeted verticals and geographies. The company has laid out three-year growth targets that balance ambition with achievability, emphasizing a refocused go-to-market strategy in North American retail and European hospitality, which currently constitute a significant portion of its revenue. Despite macroeconomic risks, the stock’s risk/reward profile is considered attractive, supported by a low EV/gross profit multiple and an undemanding EBITDA valuation.
Lightspeed POS Inc’s focus on specific retail verticals, such as apparel and sports, leverages its supplier integration with NuORDER, contributing to a strong win rate. Additionally, the expansion of outbound sales in European hospitality markets is expected to drive growth, with plans to significantly increase the sales force. The company aims for substantial gross profit and EBITDA growth by FY2028, supported by increasing customer locations and module upsells, which underpin the positive outlook and Buy rating.
In another report released yesterday, Benchmark Co. also reiterated a Buy rating on the stock with a $16.00 price target.