Shopify Stock Is Surging: What's Going On?

Shopify Inc SHOP shares are trading higher Thursday amid positive analyst coverage.

What Happened: Roth MKM analyst Darren Aftahi maintained Shopify with a Buy rating and raised the price target from $68 to $73, citing positive channel checks ahead of the company's second-quarter earnings next month. 

"Our 2Q merchant checks suggest growth acceleration from our prior survey," Aftahi said in a new note to clients.

MKM surveyed Shopify merchants in June and early July. The firm found that median growth was around 14.2% year-over-year compared to 10.4% in the first quarter. Based on the findings, Roth MKM believes second-quarter estimates could be conservative.

Shopify is expected to report financial results in early August although a date has not yet been confirmed. The company is expected to report earnings of 6 cents per share on quarterly revenue of $1.62 billion, according to Benzinga Pro estimates. 

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SHOP Price Action: SHopify shares were up 5.69% at $69.67 at the time of publication, according to Benzinga Pro.

Photo: Open Grid Scheduler from Flickr.