Brokerages Set Shopify Inc. (NASDAQ:SHOP) Target Price at $158.42

Shares of Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) have received an average recommendation of “Moderate Buy” from the forty-three brokerages that are presently covering the company, Marketbeat Ratings reports. Ten research analysts have rated the stock with a hold rating, thirty-one have assigned a buy rating and two have assigned a strong buy rating to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $157.1667.

Several analysts recently weighed in on the stock. Cantor Fitzgerald reiterated a “neutral” rating and issued a $126.00 price objective (down from $181.00) on shares of Shopify in a research report on Thursday, February 12th. Needham & Company LLC restated a “buy” rating and issued a $180.00 price target on shares of Shopify in a research note on Tuesday, May 5th. BMO Capital Markets cut their price target on Shopify from $160.00 to $145.00 and set an “outperform” rating on the stock in a report on Wednesday, May 6th. Jefferies Financial Group reissued a “hold” rating and issued a $140.00 price objective (down from $150.00) on shares of Shopify in a report on Tuesday, May 5th. Finally, TD Securities raised Shopify from a “hold” rating to a “buy” rating and set a $159.00 target price on the stock in a research note on Thursday, February 12th.

Hedge Funds Weigh In On Shopify

Hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in Shopify in the fourth quarter worth approximately $2,611,797,000. Jennison Associates LLC lifted its stake in Shopify by 64.3% during the third quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock valued at $2,812,211,000 after buying an additional 7,403,821 shares in the last quarter. Sands Capital Management LLC lifted its stake in Shopify by 37.0% during the fourth quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker’s stock valued at $1,530,187,000 after buying an additional 2,568,765 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Shopify by 9.8% in the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after buying an additional 1,252,074 shares during the period. Finally, Thrivent Financial for Lutherans increased its position in shares of Shopify by 7,207.2% in the fourth quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker’s stock worth $184,883,000 after acquiring an additional 1,132,545 shares in the last quarter. 69.27% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: UBS said Shopify’s point-of-sale business could become a much bigger long-term growth driver than the market currently assumes, adding to gross merchandise value and profit growth over the next decade. The note reinforces the idea that Shopify’s in-store commerce and retail tools can expand beyond its core e-commerce platform.
• Positive Sentiment: Shopify also benefited from a broader rebound in software names after strong results from companies like Snowflake and Okta eased fears that AI would disrupt subscription software models. That improving sentiment has helped lift investor appetite for software stocks, including SHOP.
• Positive Sentiment: Recent coverage also highlighted Shopify’s strong B2B momentum, with Q1 B2B gross merchandise value reportedly up 80% year over year, suggesting another avenue for enterprise growth and supporting the bullish case for the stock.
• Neutral Sentiment: Reddit’s expanded Shopify integration, now generally available for merchants, could indirectly support Shopify’s ecosystem by making it easier for merchants to advertise and sell through Reddit. While this is more directly a positive for Reddit, it underscores Shopify’s role as a commerce platform connected to more marketing channels.
• Neutral Sentiment: Other recent articles pointed to AI-related merchant tools and app integrations, such as EZ Texting, which may improve Shopify’s value proposition over time but are not immediate stock-moving catalysts on their own.

Shopify Stock Performance

Shopify stock opened at $118.71 on Friday. Shopify has a one year low of $94.00 and a one year high of $182.19. The stock’s 50 day moving average price is $114.71 and its 200 day moving average price is $134.06. The firm has a market capitalization of $154.04 billion, a PE ratio of 117.54, a price-to-earnings-growth ratio of 3.22 and a beta of 2.64.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last released its quarterly earnings results on Tuesday, May 5th. The software maker reported $999.00 EPS for the quarter, topping the consensus estimate of $0.22 by $998.78. Shopify had a return on equity of 12.07% and a net margin of 10.77%.The business had revenue of $3.17 billion for the quarter, compared to analysts’ expectations of $3.08 billion. On average, analysts forecast that Shopify will post 1.36 earnings per share for the current fiscal year.

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.