Year-end holiday shopping in Canada is forecast to rise 13% this year, and that’s good news for e-commerce companies such as Shopify (SHOP).
Accounting firm PwC forecasts that Canadian consumers will spend an average of $1,853 during the Christmas season, a 13% increase from 2023. Canadians are feeling more optimistic about the economy, which is likely to be reflected in holiday spending, says PwC. And that means opportunity for stocks like Shopify, which provides merchants and small businesses with the tools needed to run their own websites and sell to consumers through online channels.
Support from Jim Cramer
Separately, CNBC host Jim Cramer has come out in favor of SHOP stock. Cramer called out Shopify as part of his top 10 stocks to buy and sell for October, declaring it a Buy. He pointed out that Shopify is doing well, as evidenced by its strong recent earnings report.
Is Shopify Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:SHOP stock based on 23 Buys and 11 Holds assigned in the past three months, as indicated by the graphic below. After a 55.51% rally in its share price over the past year, the average TSE:SHOP price target of C$106.94 per share implies 6.73% downside risk.
