Redburn Atlantic has revised its outlook on Lightspeed (LSPD, Financial), reducing the company's price target from $15 to $9 while maintaining a Neutral stance. The firm suggests that the payment sector is often misunderstood, highlighting its attractive valuation, low earnings risk, and substantial cash returns.
Despite reducing forecasts in response to a broader economic slowdown, Redburn remains optimistic about the sector's fundamentals. The firm identifies Mastercard and Toast as its preferred choices, noting that concerns regarding the economic cycle's impact on the payments industry might be overstated. According to Redburn, payment companies are closely linked to nominal consumption, suggesting that any potential recession would primarily affect the units rather than nominal values.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Lightspeed Commerce Inc (LSPD, Financial) is $14.79 with a high estimate of $20.53 and a low estimate of $11.00. The average target implies an upside of 61.44% from the current price of $9.16. More detailed estimate data can be found on the Lightspeed Commerce Inc (LSPD) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Lightspeed Commerce Inc's (LSPD, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lightspeed Commerce Inc (LSPD, Financial) in one year is $25.78, suggesting a upside of 181.44% from the current price of $9.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lightspeed Commerce Inc (LSPD) Summary page.
