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Tuesday, February 18, 2025 - Global-E Online Ltd (NASDAQ:GLBE) shares may see increased interest after Benchmark analyst Mark Zgutowicz raised the company’s price target to $68 from $60 while reiterating a Buy rating on the stock. The adjustment comes in anticipation of the company’s fourth-quarter earnings report scheduled to be released tomorrow morning. The stock has shown remarkable momentum, with an 81.83% return over the past six months and is currently trading near its 52-week high of $63.25. According to InvestingPro analysis, the stock appears to be trading slightly above its Fair Value.
Zgutowicz’s optimism is partly based on the continued momentum from new large accounts that Global-E secured in the third quarter, including high-profile names such as Victoria’s Secret, Harrods, and Manchester United (NYSE:MANU). The analyst expects this trend to extend into the fourth quarter and the first quarter of the following year, potentially boosted by a significant new department store partnership. This expansion strategy has contributed to the company’s robust revenue growth of 28.76% over the last twelve months, with InvestingPro data showing strong financial health metrics and 12 additional key insights available to subscribers.
Shopify’s (NYSE:SHOP: Buy-rated) increased cross-border Gross Merchandise Volume (GMV), which rose to 15% of its total from 14% previously, is also expected to contribute positively to Global-E’s results. Zgutowicz estimates that Shopify Managed Markets could add 5% and 7%, or $225 million and $450 million, respectively, to Global-E’s 2024 and 2025 GMV estimates. Investors are awaiting management’s commentary on the near-term momentum relative to these projections.
Additionally, the analyst is looking for updates on the progress of the Borderfree marketplace, launched in the third quarter, as it moves towards 2026 monetization potential. Key indicators will include merchant and SKU milestones throughout 2025.
On the cost side, the focus will be on Global-E’s path to GAAP profitability by the second quarter of 2025, following the completion of its commercial agreement with Shopify, which is expected to conclude by April 2025. This agreement includes asset amortization, which could influence the company’s cost structure and profitability.
In other recent news, Global-E Online has been the subject of several updates from financial analysts. KeyBanc Capital Markets has raised the target price for Global-E Online to $65, citing a more optimistic view of the company’s growth potential through its partnership with Shopify. In a similar move, Jefferies adjusted its target price for Global-E Online to $63 after meetings with the company’s management, expressing optimism about the company’s short-term prospects and longer-term potential.
In addition, the company managed to maintain its Buy rating and $55 price target after reporting a significant year-over-year growth in cross-border e-commerce sales during the Black Friday to Cyber Monday weekend. This positive performance led Needham, the firm responsible for the stock’s analysis, to maintain its 4th quarter Gross Merchandise Volume (GMV) growth estimate for Global-E Online at 38.5%.
Moreover, following the company’s third-quarter financial results, KeyBanc Capital Markets increased its price target for Global-E Online to $55, maintaining an Overweight rating on the stock. Lastly, after the company’s solid third-quarter earnings report, Jefferies increased its price target for Global-E Online from $50 to $58, while maintaining a Buy rating on the stock. These recent developments reflect the analysts’ confidence in the company’s growth trajectory and strategic moves.
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