Shopify (SHOP), the Canadian-based global commerce platform, has been on a remarkable journey. Over the past year, its stock price has surged by an impressive 56%, with a 13% increase year-to-date. This upward trajectory is a testament to the company’s robust performance and strategic initiatives. In the aftermath of its impressive earnings report, notable five-star analysts have reinforced their bullish stance on Shopify and submitted Buy ratings.
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In the fourth quarter, Shopify reported sound results. Revenue increased 31% year-over-year to $2.81 billion, and adjusted earnings per share rose 29% to 44 cents. These figures surpassed analysts’ expectations and highlighted Shopify’s strong market position.
Five-Star Analysts Are All in
As mentioned, leading analysts are extremely optimistic about Shopify’s future. Mark Zgutowicz from Benchmark Co., a five-star analyst, maintains a “Buy” rating with a price target of $150, indicating a 24.49% upside. Kenneth Wong from Oppenheimer, another five-star analyst, has raised the price target from $130 to $150, reflecting a 24.49% upside while maintaining a “Buy” rating. Keith Weiss from Morgan Stanley, another one holding a five-star rating, increased the price target from $126 to $144, suggesting a 19.51% upside, and continues to rate the stock as a “Buy.” Lastly, Colin Sebastian from Robert W. Baird, yet another five-star analyst, raised the price target from $126 to $135, indicating a 12.04% upside while maintaining a “Buy” rating.
These unanimous “Buy” ratings from top-tier analysts reflect a strong consensus on Shopify’s growth potential, with several key factors driving the bullish sentiment among these analysts. Firstly, Shopify’s innovative approach to e-commerce has positioned it as a leader in the industry, enabling businesses of all sizes to thrive in the digital marketplace. Secondly, the company’s steady revenue growth and earnings beats reflect its operational efficiency and adaptability in the market. Lastly, Shopify’s strategic investments in tech and infrastructure are destined to fuel long-term growth, positioning it as an attractive option for investors.
What Does the Tipranks’ Smart Score Say?
Shopify holds a Smart Score of 7, meaning a “Neutral” position. This score is derived from a moderate buy analyst consensus and bullish blogger sentiment, with 83% positive sentiment compared to the sector average of 67%. Hedge fund activity shows a decrease of 955,200 shares in the last quarter, while insiders have sold shares worth $23.2 million over the past three months. Crowd wisdom is also very positive, with a 1.2% increase in the last 7 days and a 2.9% increase over the previous 30 days. Technical indicators show positive Simple Moving Averages (SMA) for both 20 days and 200 days, with a 32.16% momentum over the past 12 months. Fundamentals reveal a return on equity of 15.04% and asset growth of 17.82% over the trailing 12 months.
Is Shopify a Buy or a Sell?
Turning to Wall Street, Shopify is considered a Moderate Buy. The average price target for SHOP stock is $129.42, suggesting a 7.41% upside potential.
