Benchmark cuts Global-E Online price target to $52, maintains buy

Published 15/05/2025, 14:42
© Rotem Barak, Global-e PR

Thursday, May 15, 2025 - Global-E Online Ltd (NASDAQ:GLBE) shares are in focus after Benchmark analyst Mark Zgutowicz revised the company’s price target. The new target has been set at $52.00, down from the previous $55.00, while the Buy rating on the stock remains unchanged. The stock, currently trading at $33.90, has seen a significant 37% decline year-to-date, according to InvestingPro data.

The adjustment follows Global-E Online’s first-quarter results, which Zgutowicz found satisfactory given the current challenges in consumer demand and global trade. Despite current market headwinds, InvestingPro data shows impressive revenue growth of 33.2% over the last twelve months, with analysts expecting continued growth this year. The analyst highlighted Global-E Online’s new commercial agreement with Shopify (NASDAQ:SHOP) as a significant development, enhancing the company’s penetration potential in both its 1P (Managed Markets) and 3P operations.

The agreement with Shopify, which is Global-E Online’s largest shareholder and has been investing in Managed Markets for several years, now carries a quasi-exclusive status. This partnership is seen as bolstering Global-E’s position in the global cross-border commerce sector.

Zgutowicz pointed out that approximately 90% of Global-E’s activity on Shopify is third-party (3P), with the remainder being first-party (1P). In terms of gross merchandise volume (GMV), Shopify accounts for about 40% of Global-E’s GMV, of which 5% is 1P. The analyst expects that Managed Markets will conservatively continue to represent around 5% of the total GMV through the year 2026.

Investors are monitoring these developments closely as they reflect the company’s strategic moves to strengthen its market position amidst a complex global economic landscape. With a market capitalization of $5.8 billion and strong financial health indicators, including more cash than debt on its balance sheet, Global-E Online’s stock performance today and in the coming sessions may be influenced by these adjustments and the company’s ongoing relationship with Shopify. For deeper insights into GLBE’s valuation and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Global-E Online Ltd. reported first-quarter results that exceeded market expectations. The company achieved a revenue of $190 million, marking a 30% year-over-year increase, slightly above the consensus estimate of $188 million. Additionally, Global-E’s adjusted EBITDA reached $31.6 million, surpassing the forecast of $31.3 million, with an adjusted EBITDA margin of 17%. The Gross Merchandise Volume (GMV) grew by 34%, marginally higher than the expected 33%. Analysts at JMP maintained a Market Outperform rating with a $64 price target, while Raymond (NSE:RYMD) James adjusted their target to $55, citing strong fundamentals but less upside than historical averages. Global-E also announced a renewed 3-year strategic partnership with Shopify, despite some concerns about the impact on revenue and margins. Needham reaffirmed a Buy rating with a $40 target, suggesting the new terms with Shopify might drive wider adoption. The company anticipates achieving GAAP profitability from the second quarter onward, marking a potential shift to a more stable profit-generating phase.

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