Shopify price target lowered to $115 from $155 at Redburn Atlantic

Redburn Atlantic analyst Dominic Ball lowered the firm’s price target on Shopify (SHOP) to $115 from $155 and keeps a Buy rating on the shares. The firm views the payments sector as “misunderstood.” The sector is cheap with limited earnings risk and strong cash returns, the analyst tells investors in a research note. Mastercard and Toast are Redburn’s top picks. It sees concerns around the impact of the cycle on payments as misunderstood. Payment businesses are geared to nominal consumption and a potential recession will be a unit recession rather than nominal, contends Redburn. The firm cut estimates across the group to reflect the economic slowdown.