Lightspeed Commerce (LSPD) delivered plenty of positives and momentum in fiscal Q4, but they have not resulted in higher guidance, Morgan Stanley said in a note Thursday.
The note said Q4 beat was driven by growth engine acceleration, but FY27/FY28 targets were unchanged on an organic basis.
If this momentum can continue, and growth engine locations can grow 10% to 15% in the next several years, estimates would move higher, the report said.
"If this location growth is coupled with a rebound in software adoption/AI monetization/software growth and payments attach,
shares would clearly re-rate," the note said.
Still, the market is requiring not only durability in growth, but also that its investments are translating to stronger earnings and free cash flows, the note said.
"Until then, shares likely remain range-bound," it said. Morgan Stanley cut its price target to $11.50 from $13.50 while keeping its equalweight rating.
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