Highlights

  • Wedbush reaffirmed its “outperform” rating on Shopify with a new USD 185 target.
  • Several brokerages adjusted ratings and targets for Shopify in recent months.
  • Shopify reported better-than-expected quarterly earnings and improved profitability.

Wedbush maintained its “outperform” rating on Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) in a report issued Tuesday. The brokerage firm raised its target price from USD 160 to USD 185, citing ongoing operational improvements. The updated target follows recent volatility in technology stocks and continued interest in the e-commerce sector.

Analyst Actions

Other analysts also issued updated views on the company:

  • Arete Research upgraded Shopify to a “hold” rating in July.
  • Truist Financial set a USD 155 target in its recent note.
  • Evercore ISI lifted its price objective from USD 120 to USD 170, keeping an “outperform” stance.
  • Benchmark raised its price objective from USD 125 to USD 140, maintaining a “buy” rating.
  • Weiss Ratings reiterated a “hold (c)” rating in October.

As compiled by MarketBeat, Shopify holds an average analyst consensus of “Moderate Buy.” The combined target price across research houses stands near USD 157.38.

Earnings Overview

Shopify released its quarterly earnings on November 4th. The software and commerce platform reported earnings per share (EPS) of USD 0.27, exceeding analyst estimates of USD 0.24. The company recorded a return on equity of 12.30% and a net margin of 23.42%. For the current fiscal year, analysts expect earnings of about USD 1.12 per share.

Company Overview

Shopify Inc. provides an online commerce platform for merchants globally. Its services cover multiple sales channels, including web and mobile storefronts, retail stores, social media, and marketplaces. The platform assists users in managing products, payments, shipping, and analytics across markets in North America, Europe, Asia, and Latin America.