Lightspeed Commerce Inc.
Lightspeed Commerce Inc. (NYSE: LSPD) offers a software as a service (SaaS) platform that enables omni-channel commerce. Its software platform gives customers the capability to interact with customers, run their operations, take payments, and develop their business. The platform is sold through the company's direct sales team in the United States, Canada, the Netherlands, Australia, and other countries.
Key Highlights:
- The company reported a significant increase in revenues to USD 152.68 million in Q3FY22 (ended December 31, 2021), compared to USD 57.61 million in Q3FY21.
- However, LSPD's net losses increased to USD 65.49 million in Q3FY22, from USD 42.65 million in Q3FY21.
- The company's gross margin increased from 48.8% in Q2FY22 to 51.7% in Q3FY22, but still, it remains lower than the industry median of 78.2%.
- Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels.
- Stock is leaning towards the lower band of the 52-week range of USD 19.48 to USD 130.02.
- LSPD stock price has fallen 28.21% and 76.67% in the past three and six months, respectively.
Conclusion:
Considering the company's robust top line, bottom line stress, industry lagging margins, macroeconomic headwinds, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 29.01, up 4.65% as of March 18, 2022, at 12:34 PM ET.
Three-Year Technical Price Chart (as of March 18, 2022, at 12:34 PM ET). Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
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