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In a challenging market environment, Lightspeed POS (TSX:LSPD) Inc. (NYSE: NYSE:LSPD) stock has tumbled to a 52-week low, touching down at $8.85. According to InvestingPro data, the stock’s RSI indicates oversold territory, while the company maintains strong fundamentals with over $1 billion in revenue and 22% year-over-year growth. The company, known for providing point-of-sale and e-commerce software, has faced a tough year, with its stock price reflecting a significant downturn of 37.94% over the past year. Investors have shown concern as the tech sector grapples with various headwinds, leading to a reevaluation of growth stocks like Lightspeed. The current price level marks a stark contrast to the more optimistic valuations seen in previous months, as the market adjusts to the new economic landscape. InvestingPro analysis suggests the stock is currently undervalued, with analyst targets ranging from $10 to $20.53. Discover 10+ additional exclusive insights and detailed financial analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Lightspeed POS Inc. reported several developments that are drawing attention from the investment community. RBC Capital Markets maintained its Outperform rating with a price target of $15, highlighting Lightspeed’s strategic shift towards growth markets and a focus on increasing software sales to boost profits. Meanwhile, BMO Capital Markets adjusted its price target to $14, also retaining an Outperform rating, and noted the company’s plans to target specific sectors in North American retail and European hospitality, which make up a significant portion of its revenue. Benchmark analyst Mark Palmer reduced the price target to $16 but maintained a Buy rating, citing Lightspeed’s discounted valuation compared to peers and its credible growth plans despite economic headwinds.
Piper Sandler took a more cautious approach, lowering its price target to $11 and maintaining a Neutral rating, reflecting concerns over Lightspeed’s ability to achieve its ambitious growth targets amidst recent challenges. The company’s strategic focus on North American Retail and EMEA Hospitality was emphasized during its Capital Markets Day. BTIG analyst Andrew Harte also lowered the price target to $14 while maintaining a Buy rating, noting the potential for growth acceleration in the coming years driven by expanded sales teams and product investments.
The company’s recent investor presentations have outlined ambitious financial targets, including a gross profit CAGR of 15-18% by fiscal year 2028 and an adjusted EBITDA CAGR of 35%. However, analysts have expressed varying levels of confidence in these targets, with some highlighting the need for tangible evidence of growth amidst economic pressures. Lightspeed’s current valuation and strategic initiatives offer a mix of opportunities and challenges for investors navigating the competitive payments landscape.
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