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Investing.com - Benchmark raised its price target on Shopify (NASDAQ:SHOP) to $190.00 from $140.00 on Thursday, maintaining a Buy rating on the e-commerce platform. The stock, which has surged 45.68% year-to-date and currently commands a market capitalization of $195.66 billion, is trading above its InvestingPro Fair Value.
The price target increase follows Shopify’s reported 31% year-over-year GMV (Gross Merchandise Volume) growth, marking the company’s strongest growth rate in 3.5 years, according to Benchmark. This impressive growth aligns with the company’s robust 28.98% revenue growth and GREAT Financial Health Score, as reported by InvestingPro, which offers 20+ additional insights about Shopify’s performance.
Shopify currently holds approximately 12% of U.S. e-commerce market share, with lower penetration in Canada and even less in Europe, suggesting significant room for expansion in international markets.
European operations have shown particularly strong performance with 45% year-over-year growth in Q2 and 36% in Q1, while APAC (Asia-Pacific) regions grew 30% and 27% in the same respective periods.
Benchmark noted that Shopify’s growth is being driven by merchant acquisition and conversion through performance marketing and subscription trials, with both offline/POS and cross-border transactions outpacing overall GMV growth.
In other recent news, Shopify has seen a series of positive developments following its strong quarterly performance. The company reported an impressive acceleration in gross merchandise volume (GMV) growth, with a 31% year-over-year increase, and its revenue guidance for the third quarter has surpassed analyst expectations. This strong performance has led several firms to raise their price targets for Shopify. KeyBanc increased its target to $175, maintaining an Overweight rating, while RBC Capital raised its target to $170, describing Shopify’s results as the "largest beat in over two years." Cantor Fitzgerald also increased its price target to $156, citing "monster" second-quarter results with GMV and gross profit exceeding street expectations. Stifel and Truist Securities both raised their targets to $150, highlighting Shopify’s strong growth outlook and accelerating GMV and revenue growth. These developments reflect a broad consensus among analysts on the positive trajectory of Shopify’s financial performance.
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