RBC Capital Markets on Friday cut its price target on the shares of Lightspeed Commerce (LSPD.TO) by US$3.00 to US$10.00 and maintained its outperform rating after the company reported its fiscal fourth-quarter earnings.
According to analyst Daniel Perlin, while fiscal fourth-quarter results came in better than expected, he believes first-quarter guidance was "optically" disappointing to the Street, as models were likely not calibrated for the Upserve divestiture's guidance impact, and thus is weighing on the shares.
Still, the positive mix shift to faster growing growth markets, which now account for ~75% of total revenues, and likely reaching ~80% by YE FY27, should help drive revenue acceleration throughout the year, as FY27 guidance is weighted to the second half, Perlin said.
Incorporating the results and guidance, Perlin has tweaked FY27 revenue/adj. EBITDA estimates to US$1.26 billion/US$87 million from US$1.36 billion/US$98 million.
Price: $11.84, Change: $+0.31, Percent Change: +2.69%