Shopify upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Gabriela Borges upgraded Shopify to Buy from Neutral with a price target of $74, up from $67. The shares are down 23% year-to-date due to an investment cycle weighing on margin expansion in 2024 and more mixed consumer spending data points, the analyst tells investors in a research note. However, Given Shopify’s “significant technology moat” in e-commerce software and share gain across cycles, the firm believes these investments will drive more durable revenue growth at scale. Goldman says the stock dislocation creates an entry point to own the leading software platform in retail.