BMO raises price target on Lightspeed

BMO Capital analyst Thanos Moschopoulos thinks the potential actions of Lightspeed could unlock some value for shareholders.

As reported by TipRanks, the analyst September 26 maintained his “Outperform” rating and raised his price target on the stock from (US) $18.00 to $20.00.

On September 25, LSPD addressed the rumours it said were surrounding it.

“While it is the long-standing policy of Lightspeed Commerce not to comment on market rumours, the company notes the recent media reports concerning a potential transaction involving the company,” the company said. “Lightspeed Commerce periodically undertakes, and is currently conducting, a strategic review of its business and operations with a view to realizing its full potential. In this context, the company has engaged, and may continue to engage, in discussions relating to a range of potential strategic alternatives. The board of directors of Lightspeed Commerce is committed to acting in the best interests of the company and its stakeholders. The company does not intend to issue or disclose developments with respect to any of the above matters except as required under its regulatory obligations.”

The Globe and Mail’s Sean Silcoff today reported that LSPD might be further down the road with this than some expect.

“A source familiar with the matter said Lightspeed had already signed non-disclosure agreements with a number of potential strategic buyers, software companies that compete in the same space and could realize deeper cost savings through synergies than private equity buyers,” he wrote. “In addition, the source said CEO and founder Dax Dasilva would welcome a deal that would see him give up leadership. Mr. Dasilva previously left the top job in 2022 to pursue other interests including nature conservation and documentary film production, before returning to the helm this year. He said after rejoining he was “open to discussions” about a potential takeover. A company spokeswoman said Lightspeed would not comment further on anything related to the strategic review.”