Redburn Atlantic analyst Dominic Ball has adjusted the price target for Shopify (SHOP, Financial), reducing it from $155 to $115 while maintaining a Buy rating. This decision comes as part of Redburn's broader analysis of the payments sector, which the firm believes is not fully appreciated by the market. According to the research note, the sector offers solid cash returns with minimal earnings risk, despite its current undervaluation.
Redburn has identified Mastercard and Toast as their preferred choices within the payments industry. The firm argues that concerns about the sector's susceptibility to economic cycles may be overblown. Redburn suggests that any potential recession will more likely be a unit recession rather than affecting nominal consumption, which is what payment businesses are primarily linked to.
In light of the anticipated economic slowdown, Redburn has revised its estimates for the payments sector. Despite the adjustments, the firm remains optimistic about the sector's resilience and long-term growth potential.
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 58.35% from the current price of $83.96. 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 $111.73, suggesting a upside of 33.08% from the current price of $83.96. 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.
