CIBC says Lightspeed exploring a sale to maximize shareholder value “is not a surprise.” The company’s valuation is “heavily discounted” due to it underperforming its peers, the analyst tells investors in a research note. The believes Lightspeed’s pivot “can meaningfully improve” its business plan execution and revenue growth, and expand adjusted EBITDA as fiscal 2025 progresses. The pivot expands Lightspeed’s options and should be attractive to both investors and potential acquirers, contends CIBC. It finds Lightspeed shares attractive and keeps an Outperformer rating on the name with a C$35 price target.
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