Raymond James analyst Brian Peterson has maintained their neutral stance on SHOP stock, giving a Hold rating on November 21.
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Brian Peterson’s rating is based on several factors that highlight both positive and cautious elements in Shopify’s recent performance. The company reported a significant increase in sales during the Black Friday/Cyber Monday period, with a 27% year-over-year growth, which indicates a strong performance in this critical shopping period. The growth in average cart sizes and the increase in the number of consumers purchasing from Shopify brands are positive indicators of the company’s expanding reach and consumer base.
However, despite these encouraging results, Peterson maintains a Hold rating due to the need for sustained strong sales beyond the holiday period to support higher growth expectations. While Shopify’s growth outpaces its e-commerce peers, such as Adobe, which reported lower sales growth, the reliance on holiday sales to meet or exceed quarterly growth targets suggests some uncertainty. Therefore, the Hold rating reflects a balanced view, acknowledging Shopify’s current strengths while also considering the need for continued performance to justify a more bullish outlook.
In another report released on November 21, Barclays also maintained a Hold rating on the stock with a $140.00 price target.