Top PickSecond stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/david-burrows-top-picks~2287309
Lightspeed (LSPD TSX)
LightSpeed is well positioned to show meaningful growth in both the short-term and long-term. In the short-term, LSPD will be a natural beneficiary of the restaurant, retail, and hospitality recovery as more restrictions are lifted, as well as their activity in M&A, to which they’ve had a strong track record in.
Over the longer-term, LSPD is poised to continue to be the highest organic growth story in Canada given their push to accelerate the adoption of payments. Management recently launched their solution in Europe, and saw similar penetration levels as North America almost immediately, and they reported, globally, that ~60-70 per cent of new merchants are adopting payments, showing continued acceleration from previous quarters.
As of last quarter, ~10 per cent of gross transaction value was process by LightSpeed Payments, management anticipates reaching 50 per cent penetration within the foreseeable future. Looking at current consensus numbers, a 50 per cent penetration rate would equate to an additional $1.6B (FY23) to $2.4B (FY25) in revenue, compared to Fiscal 2021 revenue of $221M and current 2022 consensus of $530M. The market would pay a peer-leading multiple for organic growth of that scale.
TOP PICK
Lightspeed Commerce Inc(LSPD-T)
22/09/2021
Natural beneficiary of the reopening. Sells a suite of products in hospitality, retail, and gaming. Excellent acquisitions. Growing business nicely organically. Fastest-growing company in the space globally. Will continue to trade at a significant premium. No dividend. (Analysts’ price target is $152.49)
David Burrows
$157.830
Owned