Analyst Daniel Perlin of RBC Capital sets a new price target for Lightspeed (NYSE: LSPD) at $10.00. This stock analysis highlights Lightspeed's role as a leading provider of point-of-sale (POS) and commerce software for businesses, particularly in the retail technology and hospitality sectors. The new target was issued when Lightspeed's stock price was $8.59, suggesting potential upside from its current trading level, offering an optimistic investment outlook.
The company is in a "pivotal" year, narrowing its focus to North American retail and European hospitality. This strategic shift aims to produce stronger growth and better profitability. As part of this plan, Lightspeed sold its Upserve U.S. hospitality product line to streamline its operations and concentrate on its core strengths in e-commerce solutions.
This strategic shift shows positive results in its recent financial performance. Lightspeed's fourth-quarter revenue is $290.80 million with a gross profit of $129.10 million, both marking a 15% increase from the previous year. Adjusted EBITDA, a key profitability metric before interest, taxes, depreciation, and amortization, is $15 million for the quarter.
Despite strong revenue, the company's earnings per share (EPS) present a different picture. As highlighted by Zacks, Lightspeed's quarterly earnings are $0.08 per share, missing analyst estimates of $0.10. This figure is also lower than the $0.10 per share from the same quarter a year ago, showing a decrease in net profit per share.
To support its stock value, the company’s board has renewed its share buyback program. This allows Lightspeed to repurchase up to 10% of its available shares from the market. Such actions can help increase the value of the remaining shares for investors. The company also added 3,200 net new customer locations, demonstrating continued customer acquisition.
