Shopify upgraded to Outperform from In Line at Evercore ISI

Evercore ISI upgraded Shopify to Outperform from In Line with a $75 price target. The recent pullback in the stock has created an attractive entry point to own a “best-in-class” e-commerce platform business, the analyst tells investors in a research note. The firm sees a “very resilient long thesis” to Shopify shares, citing the company’s “very large” total addressable market of $850B, “very strong” competitive position and up-market opportunity, “clear track record” of successful product innovation, and the potential for materially ramping profitability. Shopify’s disappointing operating margin outlooks over the last two earnings reports and the resulting material share price and estimates corrections “have largely de-risked SHOP shares,” contends Evercore.