Andrew Bauch, an analyst from Wells Fargo, maintained the Buy rating on Shopify (SHOP – Research Report). The associated price target remains the same with $135.00.
Andrew Bauch has given his Buy rating due to a combination of factors that highlight Shopify’s strong business performance and growth potential. One key factor is Shopify’s recent success in enterprise, offline, and B2B sectors, which the company believes can be sustained. Shopify is also actively addressing tariff challenges by enhancing local commerce, which is crucial given the significant portion of its cross-border transactions.
Additionally, Shopify’s new merchant growth is robust, with a balanced expansion in Europe and the U.S., indicating a healthy market presence. The enterprise segment presents a substantial opportunity, as many enterprises start with Shopify’s payment capabilities and gradually adopt more services. Furthermore, Shopify’s offline growth surpasses the company’s overall growth rate, thanks to its integrated online and offline tech stack. Lastly, Shopify is effectively balancing growth and investment, with AI-driven efficiencies and a stable headcount, suggesting a promising outlook for the company’s margins.
According to TipRanks, Bauch is a 2-star analyst with an average return of -0.3% and a 46.83% success rate. Bauch covers the Technology sector, focusing on stocks such as Shift4 Payments, Bill.com Holdings, and Fidelity National Info.
In another report released on February 25, Wedbush also reiterated a Buy rating on the stock with a $140.00 price target.