Shopify (SHOP:NYE) shares jumped 9% on Monday after Deutsche Bank raised its price target for the company. The bank’s analyst Bhavin Shah upgraded Shopify stock to a “Buy” rating and raised its price target from $40 to $50 per share.
He believes more businesses will turn to Shopify as a software solution in 2023. According to Shah, many leading brands are now actively looking to migrate to Shopify’s e-commerce platform from legacy or competing solutions, which is in sharp contrast to the pace of migrations over the last 12 months.
Shopify stock has been under pressure amid a broader tech rout and concerns about falling consumer demand. Shopify’s shares have decreased by approximately 75% from their high in November 2021.
Last summer, the company announced it would lay off 10% of its staff, with the CEO Tobi Lütke stating that the company had overestimated the increase in online purchases.
Shah is not the only analyst who has recently expressed optimism on Shopify’s 2023 prospects. CIBC Capital Markets analyst Todd Coupland lists the company as a top stock pick for 2023, saying Shopify is “positioned to benefit in Q4/22E from strong Black Friday Cyber Monday trends and may also see a potential return to formal financial guidance.”
Shopify’s shares closed on Monday at $44.05 on the New York Stock Exchange, an increase of nearly 9%. Despite the stock’s recent challenges, the company’s future looks promising, with several analysts expecting strong growth in the coming year.
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.
The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics, and reporting, manage cash, payments and transactions, and access financing.
It also sells custom themes and apps, registration of domain names; and merchant solutions, which include accepting payments, shipping, and fulfillment, and securing working capital.
The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.