In a report released today, Mark Zgutowicz from Benchmark Co. reiterated a Buy rating on Shopify (SHOP – Research Report), with a price target of $125.00.
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Mark Zgutowicz has given his Buy rating due to a combination of factors, primarily driven by strategic changes at Meta that are likely to benefit Shopify. With Meta transitioning its Facebook and Instagram shops to external website checkouts, Shopify stands to gain from increased utilization of its Shop Pay service. This shift is expected to enhance Shopify’s payment and advertising monetization, as transactions will be redirected to merchant sites, potentially increasing Shop Pay adoption and gross profit.
Additionally, Zgutowicz notes modest adjustments in Shopify’s GMV forecasts, with a slight increase in the second quarter expectations and a minor reduction for 2025. Despite these changes, the potential for improved conversion visibility and internal advertising efficacy post-transition presents a promising outlook for Shopify. The expansion of Shop Pay into new markets further supports this positive sentiment, suggesting a favorable trajectory for Shopify’s financial performance.
In another report released on June 16, D.A. Davidson also reiterated a Buy rating on the stock with a $125.00 price target.