Loop Capital analyst Anthony Chukumba has adjusted the price target for Shopify (SHOP, Financial), bringing it down from $150 to $120, yet maintaining a Buy rating on the stock. This revision follows a quarterly survey of existing Shopify merchants, where feedback showed a noticeable decline. This feedback could hint at an impending economic downturn.
Despite potential challenges to Shopify's top-line growth this year, Chukumba suggests that the company will still see improvement in its operating and free cash flow margins. This optimistic outlook is attributed to Shopify's enhanced use of artificial intelligence, which is expected to drive efficiency improvements. Investors are advised of these dynamics as part of the firm's research findings.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 43 analysts, the average target price for Shopify Inc (SHOP, Financial) is $132.95 with a high estimate of $175.00 and a low estimate of $87.64. The average target implies an upside of 58.45% from the current price of $83.91. More detailed estimate data can be found on the Shopify Inc (SHOP) Forecast page.
Based on the consensus recommendation from 48 brokerage firms, Shopify Inc's (SHOP, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Shopify Inc (SHOP, Financial) in one year is $112.69, suggesting a upside of 34.3% from the current price of $83.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Shopify Inc (SHOP) Summary page.
