LSPD Stock Forecast & Price Target

Lightspeed Commerce is expected to see continued growth with the strengthening of its location growth momentum, marked by consecutive quarters of acceleration and potential for growth within its core markets. Additionally, the company's focus on expanding its software revenue and increasing its penetration in the payments market are expected to be key drivers of growth and profitability. With an attractive risk/reward profile and potential for upside, Lightspeed Commerce may be a sound investment for long-term investors.

Lightspeed Commerce is a growing commerce platform with a global presence in over 100 countries, but its recent divestiture of Upserve and decreased projections for revenue and adjusted EBITDA raise concerns about the company's future growth and earnings quality. Additionally, there is a risk of negative revisions if churn worsens and loan growth slows, and the recent underperformance of the stock reflects investors' cautious view of the company as a "show me story." This view is further justified by the fact that Lightspeed is currently trading at a high P/E multiple of 38x, and its organic gross profit growth for FY27 is projected to be lower than its previous year's growth.