On Monday, RBC Capital maintained its Outperform rating and $20.00 price target for Lightspeed POS Inc. (NYSE:LSPD). The company announced a significant reorganization aimed at enhancing the execution of its profitable growth strategy.
The restructuring will impact approximately 200 employees, with the company planning to reallocate the resulting savings to other business areas. Management has indicated that most of the restructuring charges will be recorded in the third fiscal quarter of 2024.
The reorganization at Lightspeed POS (TSX:LSPD) is part of a broader strategic review process that the company is undertaking.
"This reorganization, according to management, does not affect, or inhibit, the company's broader ongoing strategic review process," analysts at RBC said.
The company's leadership has reiterated its commitment to achieving the financial targets set for fiscal year 2025. These goals include a minimum revenue of $1.09 billion, representing a year-over-year increase of at least 20%, and an adjusted EBITDA of at least $50 million.
Based on InvestingPro's Fair Value analysis, the stock appears undervalued at current levels, with five analysts recently revising their earnings estimates upward. For detailed insights and comprehensive analysis, investors can access the Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Lightspeed Commerce demonstrated robust revenue growth in its Q2 2025 earnings call, reporting a 20% year-over-year increase to $277.2 million, exceeding the expected range of $270 million to $275 million. The company's adjusted EBITDA also significantly increased, reaching a record $14 million, well above the forecasted $12 million.
Lightspeed expects its subscription revenue to grow by 8-10% year-over-year in the second half of fiscal year 2025. This anticipated growth is attributed to several strategic initiatives, including a significant expansion of its sales team.
Piper Sandler has adjusted its outlook on Lightspeed Commerce by increasing the price target to $17.00 from the previous $15.00, while maintaining a Neutral rating on the company's stock.
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