Benchmark Co. analyst Mark Zgutowicz reiterated a Buy rating on Shopify on August 5 and set a price target of $125.00.
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Mark Zgutowicz has given his Buy rating due to a combination of factors that suggest potential growth for Shopify. One of the key considerations is the anticipated integration of Shopify with ChatGPT, which could significantly enhance the checkout process and drive incremental gross merchandise volume (GMV). This integration is expected to become a major sales channel within Shopify’s ecosystem, potentially surpassing traditional methods like organic search and social media.
Additionally, Zgutowicz highlights the potential for modest upside in Shopify’s reported and guided GMV, supported by favorable U.S. non-store retail sales data and the company’s strong performance among higher-income demographics. The analyst also notes the stability in gross profit growth expectations and the possibility of new advertising catalysts, such as Shop Campaigns. These factors, along with a lower weighted average cost of capital (WACC) and positive revisions in future estimates, contribute to the increased price target of $140.
Based on the recent corporate insider activity of 221 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SHOP in relation to earlier this year.