SHOP - Shopify shares buoyed by upgrade at Citi to Buy
2024-04-29 09:26:53 ET
- Shares of Shopify ( NYSE: SHOP ) are getting a boost on Monday thanks to Citigroup’s upgrade of the stock to Buy -- with a High Risk qualifier -- from Neutral. Citigroup also hiked its price target by 13% to $105 amid a more resilient e-commerce backdrop and long-term growth prospects.
- Shares are 3.5% higher into Monday's open.
- Citigroup’s Deep-Dive analysis into Shopify’s ( SHOP ) Merchant Solutions business contributes to the bank’s confidence in the company’s long-term growth as its take-rate expansion accelerates in 2025 and beyond.
- The bank also lifted its top- and bottom-line estimates for 2025 to 2028 by 5/8 points with its 2027 revenue and EPS estimates 18% and 6% above the consensus expectations, respectively.
- With shares down 20% from the February highs and currently trading at a discount on growth-adjusted valuation versus its large-cap peers, Citigroup sees Shopify’s ( SHOP ) current price as an attractive entry point.
- Shopify ( SHOP ) reports Q1 results on May 8, expected to have earned an adjusted profit of $0.17 per share on $1.84B in sales.