Lightspeed Price Target Raised to $10 on 15% Q4 Revenue Growth
Analysts raised Lightspeed's price target to $10.00 from $8.59 after Q4 revenue rose 15% to $290.8M and adjusted EBITDA reached $15M. The board authorized repurchasing up to 10% of shares even as Q4 EPS of $0.08 missed estimates by $0.02 and a $28M stake exit signaled investor caution.
1. Price Target Increase and Strategic Shift
Analysts boosted Lightspeed's price target to $10.00 from $8.59, reflecting confidence in its narrowed focus on North American retail and European hospitality. This strategic pivot follows the sale of the Upserve U.S. hospitality product line to concentrate on core e-commerce solutions.
2. Q4 Financial Performance
Lightspeed reported Q4 revenue of $290.8 million, up 15% year-over-year, with gross profit rising to $129.1 million. Adjusted EBITDA reached $15 million for the quarter, while EPS of $0.08 missed estimates by $0.02 and declined from $0.10 a year earlier.
3. Shareholder Actions and Investor Sentiment
The board authorized buying back up to 10% of outstanding shares, underlining efforts to support the stock. Despite adding 3,200 net new customer locations, a fund sold 2.8 million shares for $27.96 million in Q1, highlighting lingering investor caution amid ongoing competition and dilution concerns.