Benchmark Recommends Lightspeed Commerce as a Buy

Analyst Report Summary

On February 8, 2023, Benchmark analyst Daniel Kurnos initiated coverage of Lightspeed Commerce (LSPD) with a Buy rating and a price target of $25. Kurnos believes that the company’s focus on the retail and hospitality sectors position it well to capitalize on the growing trend of omnichannel commerce.

Key Points

• Lightspeed is a leading provider of omnichannel commerce solutions for retailers and hospitality businesses.
• The company’s cloud-based platform enables businesses to manage their operations, including point-of-sale, inventory, and customer relationship management.
• Lightspeed has over 100,000 customers in over 100 countries.
• The company’s revenue grew by 45% in 2022.
• Lightspeed is profitable and has a strong balance sheet.

Growth Drivers

Kurnos believes that there are several factors that will drive Lightspeed’s growth going forward, including:

• The growing trend of omnichannel commerce.
• The increasing adoption of cloud-based software.
• Lightspeed’s strong product portfolio.
• The acquisition of Ecwid in 2022.

Valuation

Kurnos’ price target of $25 is based on a multiple of 7.5x revenue. This multiple is in line with other publicly traded companies in the omnichannel commerce sector.

Risks

Kurnos also identifies some risks to Lightspeed’s investment thesis, including:

• The competitive landscape in the omnichannel commerce sector is intense.
• Lightspeed is dependent on the success of its customers.
• The company’s revenue growth could slow down in the future.

Overall

Kurnos believes that Lightspeed is a well-positioned company with a strong track record of growth. The company’s focus on the retail and hospitality sectors, its cloud-based platform, and its strong product portfolio are all key drivers of its success. While there are some risks to the investment thesis, Kurnos believes that the potential rewards outweigh the risks.