Lightspeed Commerce Plans To Jump-Start Strong Revenue Growth, Says Bullish Analyst

Lightspeed Commerce Inc LSPD reported last month better-than-expected quarterly results.

The company is poised for strong revenue growth, driven by healthy transaction-based revenue growth and a reacceleration in its subscription-based revenue growth, according to Benchmark.

Analyst Mark Palmer initiated coverage of Lightspeed Commerce with a Buy rating and price target of $20.

The Lightspeed Commerce Thesis: The company's subscription-based revenue growth "is poised to reaccelerate thanks to its renewed focus on driving sales in that area," Palmer said in the initiation note.

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"LSPD has refocused its account managers on their traditional roles of upselling software solutions, and we expect this shift to drive an uptick in subscription-based sales in the coming quarters," he added.

Since his return as CEO in February 2024, founder Dax Dasilva has "brought an enhanced focus on managing the business for increased profitability" and de-emphasized large-scale M&A (merger and acquisition) deals in favor of driving organic growth, the analyst wrote.

The company is focused on attracting merchants that fit its ideal customer profile (ICP), which comprises "sophisticated businesses with complex needs and high sales volumes," he further stated.

LSPD Price Action: Shares of Lightspeed Commerce had risen by 1.99% to $13.10 at the time of publication on Tuesday.

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