Shopify (NASDAQ:SHOP) Price Target Cut to $145.00 by Analysts at BMO Capital Markets

Key Points

• BMO Capital Markets cut its price target on Shopify from $160 to $145 while maintaining an "outperform" rating, below the Street consensus price target of $158.97 amid a mix of analyst cuts and raises.
• Shopify beat Q1 estimates—revenue rose ~34% to $3.17B and GMV topped $100B—but shares fell as management gave cautious guidance and investors worried about near‑term margins, with the stock trading down to $105.02.
• The company still carries a rich valuation (market cap ≈ $137B, P/E ~113) and heavy institutional ownership (~69%), with large positions added by Vanguard, Jennison, Norges and Invesco.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price target dropped by research analysts at BMO Capital Markets from $160.00 to $145.00 in a research report issued to clients and investors on Wednesday,BayStreet.CA reports. The brokerage presently has an "outperform" rating on the software maker's stock. BMO Capital Markets' price objective would suggest a potential upside of 38.07% from the company's current price.

SHOP has been the topic of several other reports. Wells Fargo & Company reduced their price objective on shares of Shopify from $166.00 to $144.00 and set an "overweight" rating on the stock in a report on Wednesday. Barclays set a $126.00 price objective on shares of Shopify and gave the company an "equal weight" rating in a report on Wednesday. UBS Group set a $130.00 price objective on shares of Shopify in a report on Wednesday. Arete Research set a $175.00 price target on shares of Shopify in a research note on Monday, February 2nd. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $175.00 price target on shares of Shopify in a research note on Thursday, February 12th. Two research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $158.97.

Shopify Trading Down 2.4%

SHOP traded down $2.61 on Wednesday, hitting $105.02. The company had a trading volume of 17,174,609 shares, compared to its average volume of 10,980,982. The firm has a market cap of $136.96 billion, a P/E ratio of 112.92, a PEG ratio of 4.53 and a beta of 2.64. Shopify has a 1 year low of $88.14 and a 1 year high of $182.19. The company's fifty day moving average price is $122.10 and its 200 day moving average price is $141.64.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its quarterly earnings data on Tuesday, May 5th. The software maker reported $999.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $998.78. The firm had revenue of $3.17 billion for the quarter, compared to analyst estimates of $3.08 billion. Shopify had a net margin of 10.65% and a return on equity of 11.52%. On average, analysts predict that Shopify will post 1.36 earnings per share for the current year.

Hedge Funds Weigh In On Shopify

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in shares of Shopify by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker's stock worth $8,158,643,000 after buying an additional 743,803 shares in the last quarter. Jennison Associates LLC grew its position in shares of Shopify by 64.3% during the third quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker's stock worth $2,812,211,000 after buying an additional 7,403,821 shares in the last quarter. Norges Bank acquired a new position in shares of Shopify during the fourth quarter worth about $2,611,797,000. Invesco Ltd. grew its position in shares of Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker's stock worth $2,257,796,000 after buying an additional 1,252,074 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Shopify by 6.2% during the fourth quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker's stock worth $2,043,365,000 after buying an additional 737,892 shares in the last quarter. 69.27% of the stock is owned by institutional investors and hedge funds.

More Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 results beat on revenue and showed strong platform traction — revenue rose ~34% to $3.17B and GMV topped $100B, evidence demand and AI-driven orders remain material growth drivers. Read More.
• Positive Sentiment: Several influential analysts reaffirmed bullish ratings and high price targets (RBC with $170, Needham with $180), signaling continued long-term upside in Street expectations despite the pullback. Read More.
• Positive Sentiment: Unusual options activity: large call buying (≈213k calls, ~332% above normal) suggests some traders are betting on a rebound or event-driven upside in the near term. (No direct article link available)
• Neutral Sentiment: Q2 revenue guidance given as a range (~$3.4B–$3.5B) that roughly tracks consensus; revenue guidance was not clearly above expectations, which leaves room for re‑rating depending on execution and margin detail. Read More.
• Neutral Sentiment: Shopify highlighted AI-driven commerce gains (orders up materially via integrations with ChatGPT/Copilot/Google), which supports medium-term TAM expansion but the near-term margin path remains uncertain. Read More.
• Negative Sentiment: Several firms cut price targets (DA Davidson to $140, Wells Fargo to $144, Citizens Jmp to $150). Those cuts tighten near-term analyst momentum and can pressure the stock until guidance/margins prove resilient. Read More.
• Negative Sentiment: Market reaction: despite the beat, investors focused on a softer outlook and operating-profit concerns — shares fell after the print as traders relegated the beat in favor of slower expected growth and margin pressure. Read More.
• Negative Sentiment: Coverage noting a sizeable Q1 loss and cautious guidance amplified the negative sentiment and selling pressure. Near-term stock performance will hinge on Shopify’s ability to translate AI momentum into margin-accretive revenue. Read More.

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.

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