Shopify price target lowered to $175 from $200 at Oppenheimer

Oppenheimer analyst Ken Wong lowered the firm’s price target on Shopify (SHOP) to $175 from $200 and keeps an Outperform rating on the shares. The firm notes Shopify delivered Q1 revenue and gross merchandise value growth ahead of expectations. Management guided for Q2 growth of high-20%, in line with optimistic expectations. Underlying fundamentals appear durable with incremental gross merchandise value balanced between new/same-store sales, and U.S. growth re-accelerating. However, with expectations high into the print, Oppenheimer encountered some nitpicking of softer than expected ex-FX gross merchandise value growth, and lack of clear sequential improvement to free cash flow margins.