William Blair analyst Arjun Bhatia has reiterated their bullish stance on SHOP stock, giving a Buy rating on July 28.
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Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Shopify’s impressive growth and market position. Shopify’s recent performance has been remarkable, with the company achieving its largest revenue beat since 2021 and accelerating growth to 31% at an annualized revenue of $11 billion. This growth, coupled with a 16% operating margin, is notable and positions Shopify uniquely in the market, justifying a premium valuation.
Shopify’s execution across key growth areas has been exceptional, with substantial increases in total GMV, international GMV, B2B, and Shop Pay GMV. The company’s strategic investments in enterprise, international markets, and agentic commerce are expected to sustain this growth trajectory. Despite trading at a premium compared to peers, Shopify’s market positioning and growth potential make it a long-term winner in the commerce market. Consequently, Bhatia maintains a bullish outlook on Shopify, reiterating an Outperform rating.
In another report released on July 28, Oppenheimer also maintained a Buy rating on the stock with a $145.00 price target.
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.