Analyst Coverage Changes
On February 16th,analysts issued research reports of their coverage in response to Shopify’s recent quarterly earnings:
- Morningstar maintains a “Hold” rating and a price target of CAD 60
- RBC has an “Outperform” rating and increased the price target to CAD 65
- ATB Capital Markets has a price target of CAD 82
- TD Securities maintains a “Hold” rating and increased the price target to CAD 63
- Scotia Capital has a “Hold” rating and a price target of CAD 62
- CIBC World Markets has an “Outperform” rating and a high price target of CAD 87
SHOP Stock Price Forecast & Analysis
The average target price for Shopify Inc over the next 12 months, based on forecasts from 8 analysts, is CAD 65.36. The average analyst rating is a “Strong Buy”, indicating a positive outlook for the company. Additionally, Stock Target Advisor’s analysis of the company is Slightly Bullish, based on 6 positive signals and 5 negative signals.
As of the last closing, Shopify Inc’s stock price was CAD 71.44, which suggests that it is currently trading above the average target price. Over the past week, the stock price has increased by 6.66%, while over the past month, it has increased by 37.15%. However, over the past year, the stock price has decreased by 36.93%.
Overall, the analyst forecasts and ratings suggest that there is optimism about Shopify’s future performance, although there are some negative signals that investors should consider.
Shopify Earnings and Stock Sink
Shopify Inc. shares fell 15.9% on Thursday, its third-worst session on record, after executives declined to provide any forecast beyond the current period, and financial results failed to provide much clarity about the road ahead in 2023. Specifically, analysts were concerned about the lack of clear guidance on first-quarter operating profit, although the information provided suggested an operating loss even on an adjusted basis despite recently announced price increases. While the report didn’t seem to change Wall Street analysts’ bullishness on Shopify’s long-term prospects, it did pose challenges ahead, including growing competition from Amazon.com Inc. and questions on margins, Buy With Prime, merchant growth, and capital intensity.