Royal Bank Of Canada Forecasts Strong Price Appreciation for Shopify (NASDAQ:SHOP) Stock

Key Points

• Royal Bank of Canada has raised its target price for Shopify stock from $170.00 to $200.00, indicating a potential upside of 27.56% from the company's previous close.
• Shopify reported $2.68 billion in revenue for the last quarter, surpassing analysts' expectations, with a year-over-year revenue increase of 31.1%.
• Currently, Shopify has an average target price of $152.76 among analysts, with a consensus rating of "Moderate Buy."

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its target price upped by equities research analysts at Royal Bank Of Canada from $170.00 to $200.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the software maker's stock. Royal Bank Of Canada's price target would indicate a potential upside of 27.56% from the company's previous close.

A number of other analysts have also commented on SHOP. UBS Group increased their price objective on Shopify from $110.00 to $145.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Truist Financial increased their price objective on Shopify from $95.00 to $150.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. National Bankshares upped their target price on Shopify from $140.00 to $180.00 and gave the company an "outperform" rating in a research note on Thursday, August 7th. Evercore ISI upped their target price on Shopify from $120.00 to $170.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Finally, Zacks Research upgraded Shopify from a "hold" rating to a "strong-buy" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, twenty-two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $152.76.

Shopify Price Performance

SHOP traded up $0.22 during trading on Friday, reaching $156.79. 913,891 shares of the stock were exchanged, compared to its average volume of 9,689,732. The business's 50 day moving average price is $147.83 and its two-hundred day moving average price is $120.58. The company has a market capitalization of $203.77 billion, a price-to-earnings ratio of 87.59, a P/E/G ratio of 7.31 and a beta of 2.72. Shopify has a 1 year low of $69.84 and a 1 year high of $169.69.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last posted its earnings results on Wednesday, August 6th. The software maker reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.06. The company had revenue of $2.68 billion for the quarter, compared to the consensus estimate of $2.55 billion. Shopify had a return on equity of 12.30% and a net margin of 23.42%.Shopify's quarterly revenue was up 31.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.26 earnings per share. On average, analysts anticipate that Shopify will post 1.12 EPS for the current year.

Hedge Funds Weigh In On Shopify

Several institutional investors and hedge funds have recently made changes to their positions in SHOP. Family Legacy Financial Solutions LLC purchased a new position in shares of Shopify during the 2nd quarter valued at approximately $25,000. Financial Gravity Companies Inc. acquired a new stake in Shopify in the second quarter worth $27,000. Rothschild Investment LLC raised its position in shares of Shopify by 47.5% during the 2nd quarter. Rothschild Investment LLC now owns 233 shares of the software maker's stock worth $27,000 after buying an additional 75 shares in the last quarter. Heartwood Wealth Advisors LLC bought a new stake in shares of Shopify during the 3rd quarter worth about $27,000. Finally, Tradewinds Capital Management LLC raised its position in shares of Shopify by 71.4% during the 2nd quarter. Tradewinds Capital Management LLC now owns 240 shares of the software maker's stock worth $28,000 after buying an additional 100 shares in the last quarter. 69.27% of the stock is currently owned by hedge funds and other institutional investors.

About Shopify

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.