Q: What, in your opinion, is your outlook for Lightspeed over the next three years? What level of risk would it be in conservative portfolio from 1-10. One being low risk.
Thanks as always.
Thanks as always.
5i Research Answer:
While LSPD has $780M cash against $3B market cap, it does have negative cash flow (-$122M in the last 12 months). With its weak history, sector, valuation and size, we would give it a 6 or 7 on the risk scale (for larger companies). Sales growth is expected and it is expected to become profitable in fiscal 2025 (year end March). Forecasted growth to that time is about 40% (cumulative). The stock really has not participated much in the tech rally, and remains a 'show me' story. For tech, we think there are better places for capital.