Shopify (NASDAQ:SHOP) PT Set at $165.00 by BMO Capital Markets

Key Points

• BMO Capital Markets set a $165 price target for Shopify and maintained an “outperform” rating, implying roughly 12.4% upside from the reported share price. Analysts overall hold a “Moderate Buy” consensus with an average target of $169.72.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, and EPS of $0.42 versus the $0.40 consensus estimate. Management expects third-quarter revenue of $3.7 billion to $3.8 billion, supported by continued low-30% growth.
• Shopify shares rose 1.8% to $146.80, while the company’s AI-related merchant traffic and orders tripled year over year. Institutional investors own approximately 69.27% of the stock, although its valuation remains elevated with a P/E ratio above 145.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP has been given a $165.00 target price by analysts at BMO Capital Markets in a report released on Thursday,BayStreet.CA reports. The brokerage currently has an "outperform" rating on the software maker's stock. BMO Capital Markets' target price would indicate a potential upside of 12.40% from the company's current price.

Several other brokerages have also issued reports on SHOP. Oppenheimer reissued an "outperform" rating and issued a $175.00 target price on shares of Shopify in a research report on Wednesday, May 6th. Susquehanna started coverage on Shopify in a research note on Friday, July 10th. They issued a "neutral" rating on the stock. Citigroup reiterated an "outperform" rating on shares of Shopify in a report on Thursday. Jefferies Financial Group reissued a "buy" rating and set a $175.00 price objective on shares of Shopify in a research report on Wednesday. Finally, Morgan Stanley downgraded shares of Shopify from an "overweight" rating to a "buy" rating in a research report on Monday, July 13th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $169.72.

Shopify Trading Up 1.8%

NASDAQ SHOP traded up $2.56 during trading on Thursday, hitting $146.80. The company had a trading volume of 10,717,904 shares, compared to its average volume of 10,830,533. The company's fifty day moving average is $117.98 and its 200-day moving average is $119.65. Shopify has a one year low of $94.00 and a one year high of $182.19. The company has a market cap of $190.50 billion, a price-to-earnings ratio of 145.35, a price-to-earnings-growth ratio of 2.66 and a beta of 2.58.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.02. Shopify had a net margin of 10.77% and a return on equity of 12.07%. The company had revenue of $3.58 billion for the quarter. During the same quarter in the prior year, the firm earned $0.69 EPS. Shopify's quarterly revenue was up 33.7% compared to the same quarter last year. As a group, equities analysts anticipate that Shopify will post 1.4 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SHOP. Norges Bank bought a new stake in shares of Shopify during the fourth quarter valued at approximately $2,611,797,000. Sands Capital Management LLC lifted its position in Shopify by 37.0% in the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker's stock valued at $1,530,187,000 after acquiring an additional 2,568,765 shares in the last quarter. Invesco Ltd. boosted its stake in Shopify by 9.8% during the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker's stock valued at $2,257,796,000 after purchasing an additional 1,252,074 shares during the last quarter. Thrivent Financial for Lutherans boosted its stake in Shopify by 7,207.2% during the 4th quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker's stock valued at $184,883,000 after purchasing an additional 1,132,545 shares during the last quarter. Finally, Select Equity Group L.P. increased its holdings in shares of Shopify by 92.5% in the 2nd quarter. Select Equity Group L.P. now owns 2,246,473 shares of the software maker's stock worth $259,124,000 after purchasing an additional 1,079,494 shares in the last quarter. Institutional investors own 69.27% of the company's stock.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported second-quarter revenue of $3.58 billion, up 33.7% year over year, while adjusted earnings of $0.42 per share exceeded the $0.40 consensus estimate. The company also delivered more than 30% growth in gross merchandise volume, gross profit, and free cash flow, with an 18% free-cash-flow margin. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit and Free Cash Flow
• Positive Sentiment: Third-quarter revenue is forecast at $3.7 billion to $3.8 billion, above the approximately $3.6 billion analyst consensus, implying low-30% growth and signaling continued momentum. Shopify Expects Q3 Revenue Growth in the Low 30s
• Positive Sentiment: AI-related traffic and orders to Shopify merchants tripled year over year, while the company is expanding “agentic commerce” tools and integrating AI across its platform. Investors viewed AI platforms such as ChatGPT and Gemini as potential partners that can send customers to Shopify stores rather than as direct threats. Shopify’s AI Traffic Triples
• Positive Sentiment: Analysts raised their targets following the report: Goldman Sachs to $194, Citizens JMP to $185, Wedbush to $176, and Benchmark to $170. Each maintained a bullish rating, reinforcing expectations for further upside. Shopify Analysts Increase Their Forecasts
• Neutral Sentiment: Cantor Fitzgerald raised its target to $145 but retained a neutral rating, indicating that some analysts remain cautious after the sharp move and Shopify’s premium valuation.

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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