Lightspeed Commerce Inc T.LSPD

Raised Targets

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CIBC’s Todd Coupland raised his Lightspeed Commerce Inc.  target to $24 from $23 with a “neutral” rating. Other changes include: Barclays’ Raimo Lenschow to US$19 from US$17 with an “overweight” rating and Scotia’s Kevin Krishnaratne to US$21 from US$25 with a “sector outperform” rating. The average is US$20.27.

“LSPD remains one of our favourite names in our coverage given its valuation (3.0 times CY24 GP vs. peers at 4.7 times) and the opportunity for GP upside on its Unified Payments push,” said Mr. Krishnaratne. “Q2 results were impressive, with a Revenue beat helped by better payments attach, lower-than-anticipated location churn, and positive software trends, while Adj. EBITDA was slightly positive – a milestone achieved a quarter earlier than forecast. Although the near-term outlook for GTV trends may be softer given LSPD’s exposure to discretionary categories and a more cost-conscious consumer, these dynamics appear to be well captured in the company’s Q2 guide. Meanwhile, we like the levers in the model that are within management’s control such as product (One Lightspeed) and Unified Payments, both of which could surprise to the upside. We also think the set up is strong for a much better H2 ahead of a return to a focus on software and location growth acceleration in FY2.”