Lightspeed Commerce: ATB Capital Cuts Valuation on Macro Pressures

Lightspeed Commerce Inc. is currently facing a mixed outlook from analysts, with the stock forecast from 13 analysts indicating an average target price of CAD 21.10 over the next 12 months. This suggests a potential upside from its current stock price of CAD 14.18. The average analyst rating for Lightspeed is a “Buy,” signaling that most analysts remain optimistic about the company’s long-term prospects. However, despite the positive outlook from analysts, Stock Target Advisor’s own stock analysis is “Slightly Bearish.” This assessment is based on a mix of signals, with 2 positive factors and 4 negative ones.

Over the past week, the stock has declined by 5.53%, reflecting some near-term volatility. The situation has worsened over the last month, with the stock price falling by 23.48%, and it has dropped by 24.53% over the past year. These declines suggest that, despite the optimism from analysts, investors are facing significant uncertainty regarding Lightspeed’s short-term performance.

The decline in stock price may be attributed to several factors, including concerns over macroeconomic pressures such as inflation and rising interest rates, as well as internal challenges related to Lightspeed’s new strategic focus. The company’s performance might also be affected by shifts in the retail and e-commerce sectors, which have been undergoing significant changes as businesses adapt to evolving consumer behavior and digital transformation trends. While analysts remain generally positive in the long term, the stock’s recent performance and the mixed signals in the short term are causing caution among investors.