2 Shopify Analysts Raise Outlooks Ahead Of Q2 Report On E-Commerce Acceleration

Shopify Inc SHOP has been a key beneficiary of the accelerating adoption of online shopping during coronavirus lockdowns. The e-commerce company is scheduled to report second-quarter results Wednesday, July 29.

Credit Suisse On Shopify: Analyst Brad Zelnick maintained a Neutral rating on Shopify and raised the price target from $700 to $850, citing more sustainable growth in gross merchandise value. 

The Credit Suisse analyst expects the company to report solid quarterly results and said there is upside to consensus estimates given the continued secular shift toward e-commerce.

Shopify's strong GMV trends in April are likely to have continued into May and June, he said. 

With an increasing number of businesses expanding into e-commerce and curbside pickup, Shopify could report strong new merchant growth and high Platform fees for the quarter, Zelnick said. 

Piper Sandler On Shopify: Analyst Brent Bracelin maintained an Overweight on Shopify and raised the price target from $843 to $1,015.

Weekly downloads across Shopify’s e-commerce mobile applications suggest a strong rebound in merchant trends in the second quarter, rising 78% year-on-year and 72% sequentially, the analyst said. 

“The acceleration in eCommerce application downloads to growth levels that are nearly 2x higher than pre COVID levels gives us an upward bias to Street growth estimates for GMV at 43% y/y this quarter.” 

Piper Sandler lifted its Shopify revenue estimates for fiscal 2020 and 2021 by $12 million to $2.265 billion and by $23 million to $3.161 billion, respectively. The firm's Shopify earnings estimates for 2020 and 2021 were also raised by 7 cents to 50 cents per share and by 6 cents to 63 cents per share.

SHOP Price Action: Shares of Shopify were up 0.4% at $961.16 at last check. 

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Photo courtesy of Shopify.