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The analyst from TD Securities noted that Lightspeed’s EBITDA margin might encounter obstacles in fiscal 2025 due to the expansion of its outbound sales team. This development could impact the company’s profitability and operational efficiency. The revised rating and price target suggest a more conservative expectation of the company’s stock performance moving forward.
The downgrade comes amid a strategic shift at Lightspeed, which the analyst believes no longer aligns with the initial investment thesis that supported a Buy rating. The company’s change in direction, particularly in its sales strategy and international market targeting, appears to underlie the analyst’s revised outlook.
Lightspeed POS Inc., which provides point-of-sale and e-commerce software to businesses, is now facing a period where its strategic decisions could significantly influence its financial performance and market position. The new price target of $17.50 represents a notable decrease from the previous target, indicating tempered confidence in the company’s near-term growth prospects.
Investors and market watchers will likely monitor Lightspeed’s performance closely, especially in terms of its international customer acquisition efforts and the effectiveness of its outbound sales team expansion. The company’s ability to navigate the forecasted headwinds will be critical to its success in the upcoming fiscal year.
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