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  5. LSPD: Trane has fallen a bit from the peak what are your thoughts on growth outlook moving forward? [Lightspeed Commerce Inc. Subordinate Voting Shares]
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Investment Q&A

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Q: Trane has fallen a bit from the peak what are your thoughts on growth outlook moving forward? I’m up about 100% should I be moving on.

What is the outlook for LSPD? I’m taking a loss on this one and have held on for a few years, is there a chance this will gain any growth or should I cut my losses

Thanks!!
Asked by Mark on February 18, 2025
5i Research Answer:

On LSPD, we think it is ok to move on. There are likely 'easier' places to make returns at this stage. The buyback helps, but with no sale of the company and recent transgressions we doubt the valuation multiple is going to improve in the near term. 

We like Trane and it is a well run business. With investors sharpening their pencils a bit more around AI/Data Center spending, names like TT might see a bit of a pause for another qarter or two though. The company has had a very good run and at 27X forward earnings with mid-single digit top line growth expected, shares aren't 'cheap'. We think it comes down a bit ot timeframes here. If longer-term, we don't see a need to do much. If needing to raise a bit of cash, we would be ok with rebalancing/trimming a bit here.