Lightspeed Commerce Inc (LSPD) is on the rise, according to Benchmark analyst Mark Palmer. The company, which recently reported better-than-expected quarterly results, is primed for robust revenue growth fueled by both healthy transaction-based revenue and a renewed surge in subscription-based revenue.
Palmer, in his initiation of coverage for Lightspeed, assigned a Buy rating and set a price target of $20. He highlights the company’s strategic shift towards driving subscription-based sales, stating that Lightspeed’s subscription-based revenue growth “is poised to reaccelerate thanks to its renewed focus on driving sales in that area.” This shift, Palmer notes, is driven by Lightspeed’s realignment of account managers to prioritize upselling software solutions.
Since founder Dax Dasilva returned as CEO in February 2024, the company has adopted a more focused approach to profitability, de-emphasizing large-scale mergers and acquisitions (M&A) in favor of organic growth. This strategy includes a targeted focus on attracting merchants that fit their ideal customer profile (ICP), characterized by “sophisticated businesses with complex needs and high sales volumes.”
Shares of Lightspeed Commerce were trading up 1.99% at $13.10 at the time of publication on Tuesday.
