Roth Capital has adjusted its price target for Shopify (SHOP, Financial), lowering it from $136 to $115 while maintaining a Buy rating on the stock. This revision reflects recent merchant checks that indicate a 21% year-over-year growth in average merchant activity, which falls short of Roth's previous estimate of 25% for gross merchandise volume growth.
Despite this lower-than-expected growth, Shopify has consistently outperformed Roth's estimates by 590 basis points over the last four quarters. However, analysts have identified some signs of consumer weakness during the latter part of March and the first part of April, prompting a slight downward revision in growth forecasts for the rest of 2025.
