Bond.az - Benchmark lowered its price target on Lightspeed POS Inc. (NYSE:LSPD) to $16 from $18 on Thursday while maintaining a Buy rating on the shares.
Analyst Mark Palmer applied a 2x enterprise value-to-revenue multiple to the firm's fiscal 2027 revenue estimate of $1.235 billion to arrive at the new target. The stock currently trades at $8.57 with a market cap of $1.18 billion.
The firm said Lightspeed shares trade at just 0.5x fiscal 2027 EV-to-revenue, calling the multiple too modest for a company with its financial profile. Analysts predict the company will return to profitability this year.
Benchmark noted Lightspeed's efforts to streamline its portfolio, prioritize higher-quality growth, improve margins, and expand payments penetration have continued to improve its prospects even as its valuation has yet to reflect that progress.
In other recent news, Lightspeed Commerce Inc. reported its fiscal Q4 2026 earnings, showing a 15% YoY increase in total revenue to $290.8 million, surpassing the forecast of $282.56 million. BTIG also adjusted its price target for Lightspeed shares, lowering it from $15 to $12, while maintaining a Buy rating.
