FISV - ADP Lightspeed cut to Underweight at JPMorgan in payment re-balance

Lightspeed POS (NASDAQ:LSPD) drops 2.3% and Automatic Data Processing (NASDAQ:ADP) stock slips 0.9% in premarket trading after JPMorgan Tien-Tsin Huang downgrades the payment processors to Underweight, saying they already trade at healthy premiums to the market. The ADP downgrade reflects Huang's preference for the Big 3 in legacy processors — FIS (NYSE:FIS), Fiserv (NASDAQ:FISV), and Global Payments (NYSE:GPN) — to narrow their valuation gap. In modern names, the analyst likes Flywire (NASDAQ:FLYW) and Marqeta (NASDAQ:MQ), organic growth names exposed to niche verticals. Lightspeed (LSPD) "ranks as the fastest growing name in our coverage north of 60%, but acquisitions explain half the growth and EBITDA losses are widening," Huan writes in a note to clients. See LSPD's outperformance vs. ADP, FISV, MQ and the S&P 500 in chart below. SA contributor Star Investments takes a more bullish view on LSPD as a play on the rebound in retail and hospitality.

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ADP, Lightspeed cut to Underweight at JPMorgan in payment re-balance