Lightspeed POS Inc. (LSPD), a Montreal-based business platform, announced on Monday the results of a study that highlights the impact of COVID-19 on LGBTQ+ businesses in North America.
The study found that gay villages have experienced a disproportionate number of closures, condemned storefronts, and high rents compared to the rest of the LGBTQ+ business community. Furthermore, women entrepreneurs and business owners are reportedly vastly under-represented in LGBTQ+ businesses, with more attention needed to develop opportunities and support for diversity within the community. According to the study, Canada lags behind the United States in recognizing LGBTQ+ businesses as a minority group for preferential spending, government procurement, and relief funds.
Lightspeed’s Founder and CEO Dax Dasilva said, “Lightspeed was founded in 2005, in Montreal’s gay village and its original members were all part of the LGBTQ+ community. The ethos of our business has always been about diversity and inclusion from the very start, so it shouldn’t come as a surprise that this research was particularly important to us. Both in the US and in Canada, majority-owned LGBTQ+ businesses generate trillions of dollars of contributions to the total GDP. Given their importance and influence on our economies, we wanted to understand exactly how the pandemic has affected this community and start a conversation with businesses and chambers of commerce, to help us build even better tools for resiliency.”
Lightspeed commissioned the scoping study to Carleton University’s Sprott School of Business with support from Canada’s LGBT+ Chamber of Commerce (CGLCC). (See Lightspeed stock charts on TipRanks)
Last week, TD Securities analyst Daniel Chan reiterated a Buy rating on LSPD while raising its price target to C$130.00 (from C$110.00). This implies 24.5% upside potential.
The rest of the Street is optimistic on LSPD with a Strong Buy consensus rating based on 8 Buys and 2 Holds. The average Lightspeed price target of C$118.95 implies 14% upside potential to current levels.