Shopify downgraded to Hold from Buy at Loop Capital

Loop Capital downgraded Shopify (SHOP) to Hold from Buy with an unchanged price target of $120. The downgrade is based on valuation and not a more bearish view of the company’s fundamentals, the analyst tells investors in a research note. Loop says Shopify remains one of the most competing long-term stories in its coverage. However, with the stock trading at 14.7 times its estimated 2025 revenue, Loop believes the shares already price in its bullish outlook. As such, it now prefers to wait for a more attractive entry point.