JPMorgan Downgrades Lightspeed POS Inc. (LSPD) to Underweight

JPMorgan analyst Tien-tsin Huang downgraded Lightspeed POS Inc. (NYSE: LSPD) from Neutral to Underweight with a price target of $9.00 (from $10.00).

The analyst comments: "As a pure-play provider of point-of-sale (POS) software, LSPD is the beneficiary of two powerful secular trends at the POS: (1) SaaS-based solutions replacing legacy systems and (2) software taking over payments distribution. LSPD gained scale primarily via its M&A strategy, and is re-orienting its business to focus on sustainable profitable growth; we are prioritizing organic names in niche markets (LSPD's core retail and restaurant verticals are quite competitive) and prefer a wait-and-see view on LSPD's narrower focus and united POS/payments initiative. We take a wait and watch approach as Lightspeed invests in expanding its two key growth markets - retail in North America & hospitality in Europe - while preserving its backbook (40%) where we are cautious on churn at a high decremental margin."

For an analyst ratings summary and ratings history on Lightspeed POS Inc. click here. For more ratings news on Lightspeed POS Inc. click here.

Shares of Lightspeed POS Inc. closed at $9.11 yesterday.

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