In a report released today, Mark Zgutowicz from Benchmark Co. reiterated a Buy rating on Shopify, with a price target of $195.00.
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Mark Zgutowicz has given his Buy rating due to a combination of factors, primarily focusing on Shopify’s performance during the Black Friday Cyber Monday (BFCM) sales period. The company’s sales during this period grew by 27% year-over-year, reaching $14.6 billion, which indicates a strong market presence and suggests that Shopify’s fourth-quarter gross merchandise volume (GMV) will align closely with market expectations.
Additionally, the average order value increased by 5.7% year-over-year, which is attributed to higher income demographics making purchases. This, combined with stable discount rates and significant usage of Shop Pay, which saw a 39% increase in order placements, supports the positive outlook. These factors suggest that Shopify is well-positioned to meet or exceed consensus GMV estimates, reinforcing the Buy rating.
In another report released on December 1, RBC Capital also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 219 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.