Buy gold, crypto and China, tread carefully on rich U.S. tech: BofA’s Hartnett
In a challenging market environment, Lightspeed POS (TSX:LSPD) Inc. (NYSE: NYSE:LSPD) stock has reached a 52-week low, dipping to $10.13. The company, known for providing point-of-sale and e-commerce software, has faced significant headwinds over the past year, with a YTD decline of 30.2%. Despite these challenges, InvestingPro analysis shows the company maintains strong fundamentals with a current ratio of 6.1x and minimal debt-to-equity of 0.01. Investors have been cautious as the tech sector grapples with shifting economic conditions, which have particularly impacted growth-oriented stocks like Lightspeed. The current price level marks a critical juncture for the company, with technical indicators suggesting oversold conditions. According to InvestingPro, six analysts have revised their earnings upwards for the upcoming period, and the company is expected to turn profitable this year. For deeper insights into Lightspeed’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Lightspeed Commerce Inc. has revised its fiscal 2025 revenue outlook, now anticipating an 18% growth, down from the previously expected 20%, due to a challenging economic environment impacting transaction-based revenue. The company remains focused on profitable growth with an expected Adjusted EBITDA of over $53 million. Additionally, Lightspeed has approved a $400 million share repurchase program, reflecting confidence in its future prospects, following a strategic review. The company’s recent financial performance showed a 17% increase in total revenue to $280.1 million and a positive Adjusted EBITDA of $16.6 million, exceeding expectations. In corporate governance news, Manon Brouillette has been appointed as Executive Chair of the Board, effective April 1, 2025, bringing significant experience in business growth and transformation. Furthermore, Lightspeed has won a legal victory with the dismissal of a securities class action lawsuit in the U.S., which was deemed without merit. BofA Securities has upgraded Lightspeed’s stock to a Buy rating, setting a price target of $20, citing potential for profitable growth as the company shifts its business strategy. These developments come as Lightspeed prepares for its Capital Markets Day at the New York Stock Exchange, where it will discuss its transformation plan and long-term financial outlook.
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