Lightspeed Commerce
LSPD.TO (TSX)
Lightspeed Commerce, a platform dedicated to retail and hospitality payment solutions, is demonstrating a positive shift with enhanced earnings quality and an optimistic fiscal 2026 outlook. Despite a challenging year with a 1-year return of -18.62% and a staggering 5-year return of -80.74%, analysts predict revenue growth of 10% to 12% and adjusted EBITDA between US$68 to US$72 million. With a consensus price target averaging C$19.14, Lightspeed's growth potential could offer intriguing opportunities for investors seeking recovery in the digital commerce space.
Pros:
- Improved earnings quality
- Potential for growth in fiscal 2026
Cons:
- Negative returns over multiple years
- High beta indicating volatility
Lightspeed Commerce may be suitable for investors with a higher risk tolerance who are looking for potential recovery opportunities within the digital commerce sector. While the stock has faced significant declines over the past five years, its improving earnings quality and projected revenue growth could appeal to those willing to navigate volatility in pursuit of long-term gains.
