Analyst Bradley Sills from Bank of America Securities maintained a Buy rating on Shopify and increased the price target to $185.00 from $110.00.
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Bradley Sills has given his Buy rating due to a combination of factors that indicate Shopify’s strong performance and growth potential. The company’s key growth initiatives are showing significant results, leading to an increase in the price objective from $110 to $185. This is supported by Shopify’s impressive growth in Gross Merchandise Value (GMV), which is outpacing the overall e-commerce industry, suggesting that Shopify is gaining market share.
Shopify’s second-quarter performance was particularly strong, with revenue growth surpassing expectations and operating margins expanding. The company’s merchant solutions are growing rapidly, contributing to overall revenue growth, and Shopify is making notable strides in the enterprise sector with significant new clients. Despite a slight contraction in gross margins, Shopify’s strategic marketing initiatives are expected to drive sustained growth by reaching new and higher-value customers. These factors collectively underpin the confidence in Shopify’s ability to achieve outsized share gains over the coming years.
Sills covers the Technology sector, focusing on stocks such as Salesforce, Workday, and CoreWeave, Inc. Class A. According to TipRanks, Sills has an average return of 4.2% and a 48.55% success rate on recommended stocks.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $175.00 price target.