Shopify (NASDAQ:SHOP) Stock Price Expected to Rise, Benchmark Analyst Says

Key Points

• Benchmark raised Shopify’s price target to $170 from $145 and maintained a “buy” rating, implying about 15.6% upside from the prior close.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, while EPS of $0.42 exceeded the $0.40 consensus estimate. Analysts’ average rating remains “Moderate Buy,” with a consensus price target of $164.94.
• Shares rose 2% to $147.09, but Shopify trades at a lofty 145.64 price-to-earnings ratio, leaving the stock exposed if growth slows or investment pressures margins.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price target hoisted by stock analysts at Benchmark from $145.00 to $170.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has a "buy" rating on the software maker's stock. Benchmark's price target points to a potential upside of 15.58% from the stock's previous close.

Several other brokerages also recently commented on SHOP. Citizens Jmp lifted their target price on shares of Shopify from $150.00 to $185.00 and gave the stock a "market outperform" rating in a report on Thursday. Robert W. Baird set a $150.00 price objective on shares of Shopify in a research report on Wednesday, May 6th. Oppenheimer restated an "outperform" rating and set a $175.00 price objective on shares of Shopify in a report on Wednesday, May 6th. Susquehanna initiated coverage on Shopify in a research note on Friday, July 10th. They set a "neutral" rating on the stock. Finally, Canaccord Genuity Group set a $180.00 price target on Shopify in a report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $164.94.

Shopify Stock Up 2.0%

Shares of SHOP stock traded up $2.85 during trading on Thursday, reaching $147.09. 4,249,990 shares of the company's stock were exchanged, compared to its average volume of 10,781,069. The stock has a market capitalization of $190.87 billion, a PE ratio of 145.64, a PEG ratio of 2.66 and a beta of 2.58. Shopify has a twelve month low of $94.00 and a twelve month high of $182.19. The firm's fifty day moving average price is $117.98 and its 200-day moving average price is $119.65.

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 return on equity of 12.07% and a net margin of 10.77%.The business had revenue of $3.58 billion during the quarter. During the same period in the prior year, the business earned $0.69 EPS. The company's revenue for the quarter was up 33.7% compared to the same quarter last year. As a group, analysts anticipate that Shopify will post 1.4 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Kingdom Financial Group LLC. bought a new stake in shares of Shopify during the 4th quarter worth approximately $26,000. Curio Wealth LLC bought a new stake in Shopify during the fourth quarter worth $27,000. Evolution Wealth Management Inc. boosted its holdings in shares of Shopify by 203.9% in the 1st quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker's stock valued at $27,000 after purchasing an additional 155 shares in the last quarter. Graney & King LLC bought a new position in shares of Shopify in the 1st quarter valued at $27,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of Shopify during the 4th quarter worth $29,000. 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 second-quarter revenue of $3.58 billion, up 33.7% year over year, while earnings of $0.42 per share exceeded the roughly $0.40 analyst consensus. Revenue, gross profit, GMV, and free cash flow all grew by more than 30%, with free-cash-flow margin reaching 18%. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit and Free Cash Flow
• Positive Sentiment: Third-quarter revenue guidance of $3.7 billion to $3.8 billion, implying low-30% growth, was above the approximately $3.6 billion consensus estimate. The outlook signals that recent momentum may continue despite concerns about AI competition and margin pressure.
• Positive Sentiment: Shopify said AI-referred traffic and orders from platforms such as ChatGPT and Gemini tripled year over year. Management characterized AI companies as partners that are directing shoppers and merchants to Shopify rather than replacing the platform. Shopify executive discusses AI and entrepreneurship
• Positive Sentiment: Analysts raised their forecasts following the results. Goldman Sachs lifted its price target from $170 to $194 and maintained a “buy” rating, suggesting further upside from the referenced $144.24 price. Shopify analysts increase forecasts following Q2 earnings
• Neutral Sentiment: Cantor Fitzgerald raised its target from $127 to $145 but kept a “neutral” rating, indicating that much of the improved outlook may already be reflected in the stock.
• Negative Sentiment: At approximately 143 times earnings, Shopify remains richly valued, leaving the stock vulnerable if growth slows, AI investments weigh on margins, or expectations rise faster than results.

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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