Lightspeed Commerce's (LSPD) growth targets are seen as aspirational and lack proof of market share gains, raising investor skepticism, Morgan Stanley said in a note Friday.

The company aims for 10% to 15% annual location growth and 20% to 25% gross profit growth through fiscal 2028, but Morgan Stanley noted that with limited signs of market share gains, these targets may be unrealistic.

A recent cut to fiscal 2025 guidance, implying a larger-than-expected Q4 miss, further weakened confidence in management's mid-term plan and makes the required acceleration to fiscal 2028 targets even steeper. Macroeconomic pressures, including weaker same-store sales and declining small business optimism, also weighed on the outlook.

Lightspeed is shifting its sales and marketing strategy, scaling its outbound and vertical-specific efforts to drive growth. The company plans to double its sales force in EMEA hospitality by fiscal 2026 and is emphasizing high-efficiency outbound marketing in North American retail, but Morgan Stanley noted there is little evidence this will materially impact growth.

Lightspeed plans to disclose annual location growth and average revenue per user data from fiscal 2026 onward, but investors are looking for quarterly updates to track progress, Morgan Stanley said.

Morgan Stanley maintained an equalweight rating for the company and cut its price target to $14 from $17.

Shares of Lightspeed were down 2.6% in recent trading.

Price: 9.13, Change: -0.24, Percent Change: -2.56