Lightspeed initiated with a Hold at Stifel

Stifel analyst Suthan Sukumar initiated coverage of Lightspeed with a Hold rating and $18 price target. The analyst is positive on the company’s position as a leader in cloud Point-of-Sale systems, disrupting a largely legacy sector with a next-gen commerce tech-stack to address the complex needs of merchants in the retail and restaurant industries. Sukumar adds that the recent M&A and a track record of innovation have enabled a strong competitive moat, positioning the company for further share gains. The analyst warns however that while Lightspeed shares appear de-rated, the backdrop of an uncertain macro and a recent pivot in go-to-market strategy to higher-value customer cohorts suggests further potential downside risk.