Shares of e-commerce giant Shopify (SHOP) (TSE:SHOP) surged 8.5% on Tuesday after analyst Bradley Sills from Bank of America Securities upgraded the rating to Buy from Hold. Also, he raised the price target to $82 per share from $78. The analyst believes that SHOP’s performance has improved under the leadership of its new CFO, Jeff Hoffmeister.
It is worth mentioning that Hoffmeister, a former investment banker at Morgan Stanley (MS), joined Shopify in October 2022.
BofA Analyst Sees Brighter Days Ahead
The analyst expects Shopify to report solid revenue growth and strong free cash flow conversion in the near future. This growth is expected to be fueled by solid e-commerce growth, market share gains, and effective cost management.
Sills is optimistic about Shopify’s potential to capture a larger share of the U.S. small business market, backed by its strong brand recognition.
Blogger Sentiment for SHOP Stock
Much like BofA’s analyst Sill, the sentiment among bloggers regarding SHOP stock is currently positive. Out of 82 bloggers tracked by TipRanks, 83% are bullish on SHOP stock.
Is Shopify a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the stock based on 18 Buys and 14 Holds assigned in the past three months. After a 13.2% decline in its share price over the past six months, the analysts’ average price target on Shopify stock of $76.40 per share implies a 9.58% upside potential.
