Morgan Stanley analyst Keith Weiss has maintained their bullish stance on SHOP stock, giving a Buy rating yesterday.
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Keith Weiss’s rating is based on Shopify’s strong performance and promising growth prospects. In the fourth quarter, Shopify demonstrated impressive growth with a 26% increase in Gross Merchandise Volume (GMV) and a 31% rise in revenue year-over-year, surpassing investor expectations. This growth was driven by Shopify’s expanding presence in new markets and verticals, as well as its increasing penetration and monetization efforts.
Furthermore, Shopify’s ability to balance growth with profitability is evident in its Free Cash Flow (FCF) performance, which exceeded consensus expectations by about 3%. Despite some concerns about limited margin upside in the upcoming quarter, the company’s strategic focus on headcount diligence and AI usage suggests continued FCF growth. These factors combined make Shopify a compelling investment opportunity, justifying the Buy rating.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $136.00 price target.