William Blair analyst Arjun Bhatia has maintained their bullish stance on SHOP stock, giving a Buy rating yesterday.
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Arjun Bhatia has given his Buy rating due to a combination of factors, starting with Shopify’s significantly better-than-expected fourth-quarter performance, where revenue expanded more than 30% year over year and exceeded both company guidance and Wall Street forecasts. He also highlights that the company’s full-year growth has reaccelerated versus the prior year, with momentum supported by strength in areas such as international expansion, larger enterprise customers, B2B offerings, in-person retail, and payments.
Bhatia further notes that management’s revenue outlook for the coming quarter implies growth in the low 30% range, meaningfully above consensus, underscoring the durability of Shopify’s demand drivers. While free-cash-flow margin guidance is modestly below expectations because of a temporarily higher tax rate, he views this as a short-lived headwind and argues that the current double-digit stock pullback reflects broader, AI-related risk aversion in software rather than any deterioration in Shopify’s fundamentals.
In another report released yesterday, Benchmark Co. also maintained a Buy rating on the stock with a $145.00 price target.