Zacks Research Upgrades Shopify (NASDAQ:SHOP) to "Strong-Buy"

Key Points

• Zacks Research upgraded Shopify from “hold” to “strong-buy,” adding to an overall positive analyst tone on the stock.
• Other firms remain mostly bullish: Needham, Oppenheimer, and BMO all reiterated buy/outperform views, while the consensus rating is Moderate Buy with an average target price of $156.06.
• Despite the upbeat coverage, Shopify shares were down 2.2% on the day, opening at $119.22 and still trading below the consensus target, with the stock’s premium valuation cited as a source of volatility.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other equities research analysts have also issued reports on the stock. Needham & Company LLC reissued a "buy" rating and set a $180.00 target price on shares of Shopify in a research note on Tuesday, May 5th. UBS Group reaffirmed a "neutral" rating on shares of Shopify in a research note on Thursday, May 28th. National Bank Financial lowered their price target on Shopify from $200.00 to $155.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Oppenheimer reissued an "outperform" rating and issued a $175.00 target price on shares of Shopify in a research report on Wednesday, May 6th. Finally, BMO Capital Markets dropped their price target on shares of Shopify from $160.00 to $145.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 6th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $156.06.

Shopify Stock Down 2.2%

Shares of Shopify stock opened at $119.22 on Tuesday. Shopify has a 12-month low of $94.00 and a 12-month high of $182.19. The firm has a market capitalization of $154.71 billion, a PE ratio of 118.04, a price-to-earnings-growth ratio of 2.53 and a beta of 2.58. The stock's fifty day moving average is $111.07 and its 200-day moving average is $125.59.

Institutional Trading of Shopify

Large investors have recently modified their holdings of the company. Kingdom Financial Group LLC. bought a new stake in Shopify during the fourth quarter valued at about $26,000. Curio Wealth LLC acquired a new position in shares of Shopify during the 4th quarter worth about $27,000. Evolution Wealth Management Inc. boosted its stake in Shopify by 203.9% during 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 during the period. Graney & King LLC acquired a new stake in Shopify in the 1st quarter valued at approximately $27,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new stake in Shopify in the 4th quarter valued at approximately $29,000. 69.27% of the stock is owned by institutional investors.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Bank of America reinstated coverage on Shopify with a Buy rating and a $150 price target, citing upside from AI-driven “agentic commerce,” international expansion, and stronger enterprise adoption. Shopify reinstated at Bank of America with ‘Buy’ rating on agentic commerce growth outlook
• Positive Sentiment: Shopify also announced it will report second-quarter 2026 results on August 5, which keeps attention on upcoming execution and could act as a near-term catalyst if results or guidance are strong. Shopify to Announce Second-Quarter 2026 Financial Results
• Neutral Sentiment: Shopify said it will ban vape sales on its platform, a policy move that may reduce regulatory and reputational risk, but is unlikely to be a major earnings driver by itself. Shopify to ban vape sales as experts warn illegal online market still puts youth at risk
• Neutral Sentiment: Analysts continue to view Shopify as a high-growth software name, with recent commentary highlighting its long-term appeal, but the stock still trades at a premium valuation, which can amplify volatility. Shopify (SHOP) Among the Best Software Stocks to Buy in 2026
• Negative Sentiment: The main drag appears to be a broader selloff in richly valued tech stocks, along with concern about governance changes and valuation ahead of earnings, which pressured Shopify shares intraday. HubSpot, Q2 Holdings, and Shopify Shares Plummet, What You Need To Know

About Shopify

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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