08:50 AM EDT, 09/26/2024 (MT Newswires) -- National Bank is keeping its Sector Perform rating and US$16 target on Lightspeed Commerce ( LSPD ) after the company, responding to media reports, confirmed that it is conducting a strategic review of its business and operations with a view to realizing its full potential.

Analyst Richard Tse says the news is "not entirely surprising" given press comments earlier this year from CEO Dax Dasilva following Nuvei's pending acquisition, implying that it may be a better option for Lightspeed to go private.

"In our view, the above is further fueled by what will be a challenging task of growing locations (merchants) once the company harvests its current growth spurt from the conversion of merchants to Lightspeed Payments. In our view, the narrowing of the company's market to "complex" merchants makes that pursuit potentially more challenging," Tse adds.