Lightspeed Commerce (TSX:LSPD) shares have quietly climbed about 10% in the past month, even as the company continues to operate in a competitive environment. The stock’s steady performance may catch the attention of investors looking for value in the tech sector.
See our latest analysis for Lightspeed Commerce.
Despite Lightspeed’s 1-month share price return of almost 10%, longer-term momentum is still muted. The total shareholder return over the past year is down 22%. Recent price action suggests a modest uptick in sentiment, but shares remain well below levels seen a few years ago. It appears the market is weighing signs of potential growth against lingering caution following a difficult period.
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With the share price down sharply over the past several years but recent signs of momentum, investors now face a crucial question: is Lightspeed undervalued at these levels, or is the market already factoring in any future growth ahead?
The most widely followed narrative suggests that Lightspeed Commerce’s fair value is considerably above the last closing price, hinting at meaningful upside if projections hold. This fair value is anchored on assumptions about growth, margin improvement, and a rebound in valuation multiples rather than current market sentiment.
Accelerating adoption of digital payments and cloud-based platforms in retail and hospitality, core to Lightspeed’s growth strategy, continues to boost subscription and transaction-based revenue, supporting an expanding total addressable market and steady revenue growth. Consistent product innovation, including AI-powered insights and deeper e-commerce integration, drives higher software ARPU, increases upsell opportunities, and reinforces customer retention, positively impacting future revenue and gross margin.
Read the complete narrative.
What’s really driving this valuation call? The narrative is built on ambitious growth targets, margin expansion, and a future profit outlook that could surprise many. Analysts are baking in a financial acceleration. Interested in who’s betting big on Lightspeed’s rebound, and why their assumptions matter so much? Unlock the logic behind this bold fair value calculation.
Result: Fair Value of $21.28 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent competition or a failure to grow customer locations could easily shift sentiment and undermine this upbeat forecast.