Sometimes, someone who leaves a business—or is removed—gets the chance to return. This comes with some unexpected benefits and concerns, but for point-of-sale systems maker Lightspeed (TSE:LSPD) (NYSE:LSPD), it turned out to be a welcome benefit. Lightspeed brought back Dax Dasilva, its founder, to serve as its interim chief executive officer following Jean Paul Chauvet’s departure. The move sent Lightspeed shares blasting up over 7% in Thursday afternoon’s trading.
Dasilva had already served as the company’s CEO from 2005 to 2022, stepping down to serve as executive chair before Chauvet stepped in. Chauvet stayed in the role for nearly two years but then left the company. Dasilva pointed out that this was a good time for him to come back, as Lightspeed’s current position required just as much focus on profitability as growth, including a greater consideration of operational efficiency. With Lightspeed down about 30% year-to-date, it’s clear something needed to be done.
The Plan Going Forward
Lightspeed seems to have a worthwhile plan going forward: it’s going to focus on customers that generate a higher Average Revenue Per User, or ARPU. Since Lightspeed’s systems can be used in a wide range of places—from golf courses to restaurants and even retail outlets—it can largely pick and choose its customer focus. Narrowing their focus might cost them some revenue growth, but it might drive margin growth by boosting returns on investment.
What Is the Future Price of Lightspeed Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on LSPD stock based on eight Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 15.11% loss in its share price over the past year, the average LSPD price target of C$27.19 per share implies 39.15% upside potential.
