Piper Sandler maintains Shopify Inc (SHOP:TSX) with a Neutral rating and a target price of $38

Piper Sandler maintains Shopify Inc with a Neutral rating and a target price of $38 on the company’s stock.

Based on the Shopify Inc stock forecasts from 9 analysts, the average analyst target price for Shopify Inc is CAD 65.67 over the next 12 months. Shopify Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Shopify Inc is Slightly Bullish , which is based on 6 positive signals and 5 negative signals. At the last closing, Shopify Inc’s stock price was CAD 40.70Shopify Inc’s stock price has changed by -11.68% over the past week, -90.14% over the past month and -77.63% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.