Royal Bank Of Canada Reaffirms "Outperform" Rating for Shopify (NASDAQ:SHOP)

Key Points

• Royal Bank of Canada reaffirmed its “Outperform” rating on Shopify and kept a $200 price target, implying 31.61% upside from the prior close.
• Shopify reported quarterly earnings of $0.49 per share, beating the $0.33 consensus estimate, while revenue rose 31.6% year over year to $3.74 billion.
• Analyst sentiment is broadly positive: MarketBeat reported a “Moderate Buy” consensus rating and an average target price of $178.62, though some firms rate the stock Hold.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP's stock had its "outperform" rating reaffirmed by research analysts at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They presently have a $200.00 target price on the software maker's stock. Royal Bank Of Canada's price target suggests a potential upside of 31.61% from the stock's previous close.

A number of other brokerages have also recently issued reports on SHOP. KeyCorp upped their target price on Shopify from $180.00 to $185.00 and gave the stock an "overweight" rating in a report on Monday. Phillip Securities downgraded Shopify from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 17th. DZ Bank lowered Shopify from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 7th. BMO Capital Markets set a $165.00 target price on Shopify and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Finally, RBC Dominion Securities set a $200.00 target price on Shopify and gave the stock an "outperform" rating in a report on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $178.62.

Shopify Price Performance

Shares of NASDAQ:SHOP traded up $9.39 during midday trading on Wednesday, hitting $151.96. The stock had a trading volume of 5,892,617 shares, compared to its average volume of 10,261,093. Shopify has a fifty-two week low of $94.00 and a fifty-two week high of $180.88. The company has a market capitalization of $195.52 billion, a P/E ratio of 102.68, a price-to-earnings-growth ratio of 3.23 and a beta of 2.65. The company has a quick ratio of 5.35, a current ratio of 5.35 and a debt-to-equity ratio of 0.01. The company's 50-day moving average price is $152.77 and its 200-day moving average price is $130.13.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its quarterly earnings data on Tuesday, November 3rd. The software maker reported $0.49 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.16. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The business had revenue of $3.74 billion during the quarter. During the same quarter in the prior year, the company earned $0.34 earnings per share. Shopify's quarterly revenue was up 31.6% compared to the same quarter last year. As a group, equities research analysts predict that Shopify will post 1.46 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SHOP. Graney & King LLC bought a new position in Shopify in the first quarter worth approximately $27,000. Fortitude Family Office LLC acquired a new stake in Shopify in the third quarter valued at approximately $29,000. MADDEN SECURITIES Corp bought a new stake in shares of Shopify during the third quarter valued at approximately $30,000. Laurel Wealth Advisors LLC bought a new stake in shares of Shopify during the third quarter valued at approximately $32,000. Finally, Trellis Wealth Advisors LLC acquired a new position in shares of Shopify during the third quarter worth approximately $37,000. 69.27% of the stock is owned by institutional investors and hedge funds.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of about $3.7 billion, up 32% year over year, and earnings of $0.49 per share, above consensus. Operating income reportedly rose 66%, while free cash flow increased 61% to $816 million. Shopify Stock Fell After Its Report. Here's the Price I'd Pay for It.
• Positive Sentiment: Wedbush reaffirmed its outperform rating with a $176 price target. Rosenblatt lowered its target from $186 to $180 but kept a buy rating, both indicating further potential upside from the prices cited in the reports.
• Positive Sentiment: Management highlighted momentum in AI-enabled commerce: AI-driven traffic was up 2.6 times, and Shop Pay gross merchandise volume rose 50%. Shopify Q3 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst views remain divided: Cantor Fitzgerald cut its target from $158 to $150 and maintained a neutral rating, while other analysts’ targets remain higher. Cantor Fitzgerald recommendations
• Negative Sentiment: The main pressure is that Q3 gross merchandise volume was $119.1 billion, slightly below the roughly $120 billion expected, alongside a subscription-revenue shortfall. With Shopify’s valuation elevated, investors appear to be treating even modest misses as significant. Shopify falls after Q3 revenue and merchandise volume miss estimates
• Negative Sentiment: Reports also cite AI-computing expenses and pre-holiday infrastructure investment as potential cost and margin concerns, tempering the positive growth and cash-flow figures.

Shopify Company Profile

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants' own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.

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