SHOP - Shopify Stock Has 16% Upside According to 1 Wall Street Analyst
2024-04-06 11:05:00 ET
Shopify (NYSE: SHOP) has strung together several quarters of at least 20% revenue growth, but there are still catalysts that could lift the stock higher, according to analyst Colin Sebastian at Baird.
Sebastian maintained his outperform rating on the shares but raised the price target from $85 to $87 per share. Wall Street's short-term price targets are of little use to long-term investors, but the reasons behind them can be enlightening. In this case, Shopify could be seeing strong traction in growing the number of active merchants on its platform, benefiting its growth and stock price.
The Baird analyst cited his firm's e-commerce platform survey, which indicated Shopify should see a marginal increase in net active stores. Specifically, the firm noted this could reflect strength in the Shopify Plus subscription plan, in addition to international and business-to-business opportunities.
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Shopify Stock Has 16% Upside, According to 1 Wall Street Analyst