Shopify Stock Gains on Analyst Upgrade and Promising Outlook
Image courtesy of 123rf.com

Shopify Stock Gains on Analyst Upgrade and Promising Outlook

Shopify's stock surged on Friday following an analyst upgrade from Evercore ISI.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Shopify (NYSE: SHOP) stock experienced a significant boost on Friday, June 14, 2024, following an analyst upgrade and positive market sentiment. The e-commerce platform’s shares closed at $64.69 on Thursday and surged to $67.45 by 12:05 PM EDT on Friday, representing a 4.27% increase. The stock’s 52-week range spans from $27.65 to $105.45, with an average trading volume of 44,910,000 shares.

Evercore ISI Upgrades SHOP, Sets $75 Price Target

Evercore ISI, a prominent investment research firm, upgraded Shopify’s stock from In-Line to Outperform, setting a new price target of $75. This implies a potential 16% increase from Thursday’s closing price.

The analyst believes that the recent pullback in Shopify’s stock price provides an attractive entry point for investors, given the company’s strong fundamentals and growth prospects.

The analyst cited several factors contributing to their bullish outlook on Shopify, including the company’s vast total addressable market (TAM), robust competitive position, and the opportunity to expand its presence in the upper market segments.

Additionally, Shopify’s track record of successful product innovation and the potential for significantly increasing profitability were highlighted as key drivers for the upgrade.

Evercore ISI’s Shopify Upgrade Follows J.P. Morgan

Shopify’s stock upgrade by Evercore ISI follows a similar move by J.P. Morgan earlier in the week. J.P. Morgan initiated coverage on Shopify with an Overweight rating and a price target of $74.

As of the latest financial data, Shopify’s market capitalization stands at $86.903 billion (intraday), with a beta value of 1.78 over the past five years, indicating higher volatility compared to the overall market. The company’s earnings per share (EPS) for the trailing twelve months (TTM) is reported at -$0.16.

Investors are eagerly awaiting Shopify’s next earnings report, which is expected to be released between July 29, 2024, and August 2, 2024.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.