Jefferies sees private equity or Worldpay as ‘most likely’ Lightspeed buyers

After Reuters reported Lightspeed (LSPD) is exploring a potential sale, and the company subsequently confirmed it is conducting a strategic review, Jefferies said the firm is not surprised by the news given the lackluster performance of the stock as well as the firm’s belief that profitability can improve significantly and the flagship platforms are “good assets in a competitive SMB market.” The firm adds that it views private equity players or Worldpay as “the most likely buyers,” telling investors that interest from the public strategic players – Fiserv (FI), Global Payments (GPN) and Shift4 Payments (FOUR) – appears “less likely to us.” The firm has a Hold rating and $14.50 price target on Lightspeed shares, which are up 40c, or nearly 3%, to $16.08 in Thursday afternoon trading.