Shopify Surges In Q2, Analysts Adjust Ratings And Targets Citing Strong Growth Potential

Shopify Inc.‘s SHOP strong performance across various segments has led to an array of positive updates and price target revisions from analysts.

Overall, analysts are largely optimistic about Shopify's prospects, noting its strong performance and effective management strategies. Price targets vary between $65 and $85, reflecting different perspectives on the company's growth potential and current valuation.

See below.

• Goldman Sachs maintained a favorable view of Shopify, justifying its $78 price target.
• RBC Capital Markets issued a positive assessment, maintaining an Outperform rating and setting a price target of $85.
• JPMorgan also expressed a positive sentiment, maintaining an Overweight rating and a revised price target of $74.
• Truist raised its price target for Shopify from $55 to $65 while maintaining a Hold rating.
• Scotiabank maintained a Sector Perform rating with a price target of $75.

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Goldman Sachs: The bank highlighted Shopify's robust second-quarter performance, which saw both Gross Merchandise Volume (GMV) and revenue surpassing expectations.

Goldman Sachs praised Shopify's ability to gain market share and demonstrate solid growth across international markets, B2B channels and point-of-sale (POS) systems. With a positive third-quarter outlook, the firm anticipates revenue growth in the low-to-mid 20% range.

RBC Capital Markets: Shopify's second-quarter results exceeded expectations due to strong new merchant additions and robust performance in Subscription Solutions, the firm noted.

Oppenheimer also acknowledged Shopify's results, citing significant revenue and GMV growth. However, the firm chose to hold its position on the stock due to concerns about the variability of operating expenses and take rate dynamics.

JPMorgan: The bank noted that the company's revenue and EPS exceeded estimates, driven by effective marketing and strong subscription revenue.

Truist: The firm also noted that the company's performance exceeded expectations, particularly in Subscription and Merchant Solutions.

Scotiabank: The firm highlighted Shopify's strong second-quarter results, including a 21% YoY revenue growth and improved profitability metrics. Scotiabank's adjusted target price reflects confidence in Shopify's ongoing performance, though the Sector Perform rating suggests a cautious but positive outlook.

SHOP Price Action: Shopify Shares were up by 6.73% at $68.22 according to Benzinga Pro.

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