On Tuesday, Stifel analysts adjusted their outlook on Shopify (NYSE: NYSE:SHOP) shares, increasing the price target to $120 from the previous $115. The firm continues to hold a "Hold" rating on the stock. The adjustment follows Shopify’s recent fourth-quarter financial results, which surpassed expectations in terms of revenue, gross merchandise volume (GMV), and operating margins. Currently trading at $125.12, the stock appears overvalued according to InvestingPro Fair Value metrics. The first-quarter forecasts presented a mixed picture, with revenue projections roughly meeting expectations but margin estimates falling short.
Stifel’s analysis highlighted Shopify’s ongoing expansion and execution of its growth strategy, noting the company’s consistent investments aimed at driving mid-term growth potential over 20% annually. The company’s strong execution is reflected in its impressive 23.47% revenue growth and "GREAT" financial health score, according to InvestingPro data. The firm pointed to several areas contributing to Shopify’s solid progress, including increased Payments penetration, a 50% GMV growth in Shop Pay, and advances in Enterprise, International, and B2B segments.
The analysts expect Shopify to continue investing in these initiatives, leading to reduced margin expansion in 2025 as the company focuses on growth. Despite the robust performance, Stifel’s stance remains cautious, with investor sentiment likely to pivot on the sustainability and durability of the company’s recent growth trends and its ability to capitalize on the considerable opportunities ahead.
Shopify’s fourth-quarter success, coupled with a strategic investment plan, has positioned the e-commerce platform for continued progress. Stifel’s updated price target reflects their recognition of these developments while maintaining a watchful eye on the company’s future performance and market execution.
In other recent news, Shopify has been the focus of several analyst upgrades and predictions. Canaccord Genuity maintained a positive outlook on Shopify, raising the price target to $140 from $125, while highlighting the company’s strong performance and growth in payment penetration. Similarly, BofA Securities raised the price target on Shopify to $140 from $134, citing improved Gross Merchandise Volume (GMV) and growth in merchant solutions as key drivers.
On the other hand, KeyBanc Capital Markets reiterated its Overweight rating on Shopify with a price target of $130.00, emphasizing the company’s potential for significant international revenue growth. RBC Capital Markets also maintained an Outperform rating on Shopify with a steadfast price target of $130.00, indicating that Shopify’s fourth quarter performance is likely healthier than market expectations.
Loop Capital Markets expressed continued confidence in Shopify, maintaining a Buy rating and a price target of $140.00. This confidence was based on an updated quarterly survey of current Shopify merchants and the strong performance of Shopify during the Black Friday to Cyber Monday period. These are the recent developments about Shopify from various analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.