Globe says Lightspeed sell-off said to be "overdone" 2021-11-08 08:00 ET - In the News
The Globe and Mail reports in its Saturday, Nov. 6, edition that Scotia Capital analyst Paul Steep thinks the sell-off prompted by the second quarter earnings release for Lightspeed Commerce was "overdone." The Globe's David Leeder writes in the Eye On Equities column that accordingly, a day after its shares plummeted $27.61 in Toronto, Mr. Steep raised his rating to "sector outperform" from "sector perform" (all figures U.S.). Mr. Steep trimmed his share target to $103 from $121. Analysts on average target the shares at $111.56. Mr. Steep says in a note: "We believe that there is a near-term opportunity in Lightspeed's shares given that the firm is forecast to continue to deliver year-over-year growth. Our scenario analysis indicates that reward to risk appears favourable given [Thursday's] sell-off. We would expect that the firm's shares are likely to remain highly volatile on a quarterly basis given the ongoing impact of COVID-19, and uncertainty driven by a recent short report. Key risks for the stock are the potential for on-lock-downs to slow location growth near-term, the impact of macro supply chain issues on LSPD's retail clients, and uptake of LSPD payments in new region."