BMO Capital Cuts Lightspeed Price Target to $12 Despite 15% Revenue Growth
LSPD•BMO Capital kept an Outperform rating but cut Lightspeed Commerce's price target to $12 from $13, implying modest upside after recent trading levels. The company topped quarterly revenue estimates at $290.8 million (up 15% year-over-year) but reported EPS of $0.08, missing by $0.02, and flagged mounting losses and dilution.
1. Price Target Adjustment
BMO Capital maintained an Outperform rating for Lightspeed Commerce but lowered its 12-month price target from $13 to $12, signaling tempered growth expectations. The revised target implies modest upside potential based on recent share performance.
2. Revenue and Growth Metrics
Lightspeed Commerce reported quarterly revenue of $290.8 million, a 15% year-over-year increase that topped consensus estimates. Quarterly gross profit rose 15% to $129.1 million, the company added approximately 3,200 net new customer locations, and generated $55.5 million in cash from operations for the fiscal year.
3. Earnings Miss and Dilution Concerns
In Q4, EPS of $0.08 missed the consensus estimate of $0.10, underscoring profitability challenges. Mounting net losses and dilutive share issuances raised concerns over shareholder dilution and potential earnings pressure.
