Shopify (NASDAQ:SHOP) Stock Price Target Raised at UBS Group

Key Points

• UBS raised its Shopify price target from $145 to $160 but kept a Neutral rating, implying 4.55% upside from the stock’s current price.
• 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 overall is more positive: MarketBeat reports a Moderate Buy consensus and an average price target of $179.13, with 38 Buy and 10 Hold ratings.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price target raised by investment analysts at UBS Group from $145.00 to $160.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the software maker's stock. UBS Group's price objective points to a potential upside of 4.55% from the stock's current price.

SHOP has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft increased their price target on shares of Shopify from $175.00 to $185.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $165.00 target price on shares of Shopify in a report on Wednesday. Citigroup raised their target price on Shopify from $196.00 to $216.00 and gave the company a "buy" rating in a report on Tuesday, October 27th. Morgan Stanley lowered Shopify from an "overweight" rating to a "buy" rating in a research note on Monday, July 13th. Finally, DA Davidson set a $180.00 price target on Shopify and gave the stock a "buy" rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $179.13.

Shopify Price Performance

SHOP traded up $10.46 on Wednesday, hitting $153.03. 13,142,041 shares of the stock were exchanged, compared to its average volume of 10,298,156. Shopify has a 12 month low of $94.00 and a 12 month high of $180.88. The business has a 50-day moving average of $152.77 and a two-hundred day moving average of $130.13. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35. The firm has a market capitalization of $196.89 billion, a price-to-earnings ratio of 103.40, a PEG ratio of 3.23 and a beta of 2.65.

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

Institutional Investors Weigh In On Shopify

Several hedge funds have recently modified their holdings of SHOP. Vestor Capital LLC bought a new position in Shopify during the third quarter valued at $548,000. Kestra Investment Management LLC lifted its holdings in shares of Shopify by 18.6% in the third quarter. Kestra Investment Management LLC now owns 2,119 shares of the software maker's stock worth $314,000 after buying an additional 333 shares in the last quarter. AlphaCore Capital LLC grew its stake in Shopify by 27.3% during the third quarter. AlphaCore Capital LLC now owns 7,195 shares of the software maker's stock valued at $1,067,000 after acquiring an additional 1,542 shares in the last quarter. Kohmann Bosshard Financial Services LLC grew its stake in Shopify by 0.8% during the third quarter. Kohmann Bosshard Financial Services LLC now owns 9,804 shares of the software maker's stock valued at $1,454,000 after acquiring an additional 73 shares in the last quarter. Finally, Fulcrum Asset Management LLP grew its stake in Shopify by 11.0% during the third quarter. Fulcrum Asset Management LLP now owns 51,390 shares of the software maker's stock valued at $7,617,000 after acquiring an additional 5,074 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company's stock.

Trending Headlines about Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of about $3.74 billion, up 31.6% year over year, and earnings per share above estimates. Free cash flow rose 61% to $816 million, while operating income increased 66%. Management also highlighted accelerating AI-driven shopping traffic and growing Shop Pay use. Q3 earnings and revenue report
• Positive Sentiment: ARK Invest bought roughly $12.5 million of Shopify shares during the selloff, signaling confidence from a prominent growth investor. National Bank Financial raised its price target to $185, while RBC reiterated an Outperform rating and $200 target. ARK Invest purchase report
• Neutral Sentiment: The positive results and analyst support are helping sentiment recover, but the rebound follows a sharp reaction to earnings; unusually high call-option activity also points to increased trading interest rather than a clear change in fundamentals.
• Negative Sentiment: Investors focused on Q3 gross merchandise volume of $119.1 billion, slightly below expectations, along with subscription revenue and reported revenue coming in short of some analyst forecasts. That matters because Shopify’s valuation leaves little room for disappointing growth metrics. Analysis of the Q3 miss
• Negative Sentiment: The holiday quarter brings execution risk: investors will watch whether spending and merchant activity meet expectations, and whether growth translates into sustained margins and cash generation.

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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