Is Lightspeed Commerce a buy right now?

Lightspeed Commerce is a point-of-sale and e-commerce software provider based in Canada. The Company offers e-commerce, payment processing, accounting, multi-location management, and reporting and analysis solutions for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Germany, Australia, and internationally..

Is Lightspeed the next Shopify?

Lightspeed Commerce (TSX: LSPD)(NYSE: LSPD) is a Canadian tech stock with a $4.7 billion market cap. Often referred to as the “next Shopify,” it does have many similarities to Canada’s e-commerce juggernaut. Like Shopify stock, it’s a global e-commerce company that has delivered superior returns. However, Shopify is missing key features SMBs need to run their business efficiently, including inventory management tools, complex sales workflows, varied item types, and more. Many customers using Shopify require 3rd party apps.

What is the target price for Lightspeed Commerce?

13 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Lightspeed Commerce in the last year. There are currently 1 sell rating, 2 hold rating, 9 buy ratings, and 1 strong buy rating for the stock. The price forecast for Lightspeed Commerce is 47.25, with a high estimate of 63 and a low estimate of 32. That’s 85.51% increase from the last price of 31.38. The consensus among Wall Street research analysts is that investors should “buy” Lightspeed Commerce stock.

Should you buy Lightspeed stock?

2019 and 2020 were big years for the tech industry, because of the pandemic-fueled industry tailwinds helping tech companies soar to greater heights. Most tech companies continued the positive momentum in 2021, but the year ended with a drastic decline in tech stocks across the board.

Many analysts believe that the tech meltdown was drastically overdone. Despite the recent surge in its valuation, Lightspeed stock is down by 37.55% year to date. Lightspeed is trading at NTM EV-to-sales multiple of 5.4, which is about one-third of its pre-COVID levels.

Lightspeed’s business has been performing well regardless of its valuation on the stock market. It has a booming business and a customer base that keeps expanding. The shift in selling models towards omnichannel platforms, acquisitions, and expansion into high-growth verticals and markets would accelerate its growth.

The company’s growth momentum has continued this year as well as the economy has started reopening. Recently, the company has come up with its financials for the Q1 of Fiscal Year 2022. The quarter result showed a massive 220% improvement in the company’s revenues year-over-year with its revenue reaching the $119.5 million mark. The company has projected its revenue would increase between 130% and 139% in the following quarter.

As pandemic restrictions ease worldwide, Lightspeed’s profits are sure to grow. In fact, the company anticipates long-term ARPU growth of 10% or more and growth in customer locations of 15%, annually. Therefore, the significant downturn in its valuation over the last several months makes it an attractive high-growth play to consider.

Is Lightspeed Commerce a buy right now?

Over the last 12 months, Lightspeed POS’s shares have ranged in value from as little as C$25.45 up to C$158.93. The market (TO average) beta is 1, while Lightspeed POS’s is 3.1346. This would suggest that Lightspeed POS’s shares are significantly more volatile than the average for this exchange and represent a higher risk.

Lightspeed stock are trading cheap, creating an excellent buying opportunity for investors with a long-term mindset. While LSPD stock have lost a substantial amount of value, it’s long-term fundamentals remain intact.

As investors fled risk by selling off their shares in tech stocks, many saw it as an opportunity to capture significant near-term profits. However, there is still a considerable degree of risk involved with investing in Lightspeed stock and other growth stocks. So, if you’re willing to wait and take on a bit of short-term risk, then Lightspeed could definitely be a solid buy at today’s levels.

As the stock is still trading near $31.38 it is the perfect time to buy it before it reaches $47.25