Lightspeed Commerce's (LSPD) solid fiscal Q3 results showcased yield from the transition to and investments in growth-engine markets, Morgan Stanley said in a Thursday research report.

Strategy is working with steady client location additions and the mix of annual subscription contracts in new deals in growth engine markets should support better free-cash-flow dynamics and improve retention over time, analysts wrote.

However, fiscal 2026 guidance was below consensus, eliminating the scope for positive estimate revisions, the brokerage stated.

Decelerating software growth was due in part to lapsing prior software pricing hikes, while leadership changes also added another variable to execution, according to the note.

The brokerage said it reiterated its equalweight rating on the stock and cut its price target to $13.50 per share from $15.

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