Shares of Lightspeed POS Inc (LSPD) tumbled 7.88% in after-hours trading on Friday, following a series of analyst actions that may have dampened investor sentiment. The sharp decline comes as Wall Street firms reassess their outlook on the point-of-sale and e-commerce software provider.
The most notable development was Scotiabank's decision to lower its price target on Lightspeed from $11 to $10, while maintaining a Sector Perform rating. This reduction in the expected value of LSPD shares appears to have triggered a sell-off in the after-hours session. While Scotiabank's move suggests a more cautious stance, it's worth noting that the new target still implies some upside from the stock's current after-hours price.
Adding to the mix, both Morgan Stanley and Stifel Nicolaus reiterated their Hold ratings on Lightspeed, with price targets set at $12. While these ratings don't indicate a change in outlook, they reflect a conservative view of the company's near-term prospects. The convergence of these analyst actions, particularly the lowered price target, seems to have prompted investors to reassess their positions, leading to the significant after-hours decline in LSPD's stock price.
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