These Analysts Boost Their Forecasts On Shopify After Strong Q2 Results

Shopify Inc. SHOP reported better-than-expected second-quarter earnings and issued optimistic outlook for the third quarter on Wednesday.

Shopify reported a strong second quarter, with revenue growing 21% year-over-year to $2.05 billion, beating the analyst consensus estimate of $2.01 billion. Adjusting for the sale of its logistics businesses, revenue grew by 25% year-over-year. The company also reported an adjusted EPS of 26 cents, surpassing the analyst estimate of 20 cents.

For the third quarter of 2024, Shopify expects revenue to grow at a low-to-mid-twenties percentage rate on a year-over-year basis. The company anticipates a 50 basis point improvement in gross margin compared to second-quarter 2024 and projects GAAP operating expenses to account for 41% to 42% of revenue.

"We drove strong growth in GMV, revenue, and gross profit, all amidst a mixed consumer spend environment, continued to take share and concurrently expanded our free cash flow margin," said Jeff Hoffmeister, CFO of Shopify.

Shopify shares gained 17.8% to close at $63.89 on Wednesday.

These analysts made changes to their price targets on Shopify following earnings announcement.

Morgan Stanley analyst Keith Weiss maintained Shopify with an Overweight and raised the price target from $80 to $85.

Truist Securities analyst Terry Tillman maintained Shopify with a Hold and raised the price target from $55 to $65.

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