BMO Capital raises Shopify stock price target to $180 on strong Q2 results

Published 07/08/2025, 13:46
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Investing.com - BMO Capital has raised its price target on Shopify (NASDAQ:SHOP) to $180.00 from $120.00 while maintaining an Outperform rating following the company’s strong second-quarter 2025 results and guidance. The stock has demonstrated remarkable momentum, delivering a 142% return over the past year and 46% year-to-date, according to InvestingPro data.

The firm noted that Shopify’s Gross Merchandise Volume (GMV) growth accelerated across North America, Europe, and Asia-Pacific regions compared to the previous quarter, with no apparent slowdown related to tariffs. This growth has contributed to the company’s robust 26.5% revenue increase over the last twelve months, with InvestingPro analysis showing strong financial health metrics, including a healthy current ratio of 3.71.

BMO Capital highlighted that Shopify continues to execute well across multiple growth vectors while maintaining a merchant base that has proven more resilient than initially expected.

The research firm sees potential for multiple expansion given Shopify’s competitive market position and its strong growth rate relative to the company’s size.

Shopify maintains "ongoing runway" across its various growth initiatives, according to the BMO Capital analysis of the e-commerce platform’s performance.

In other recent news, Shopify has seen several adjustments to its stock price targets following its impressive second-quarter 2025 results. The company reported a 31% year-over-year increase in revenue, surpassing analyst projections of 25%, and a 31% rise in Gross Merchandise Volume (GMV), exceeding expectations of 21% growth. Loop Capital increased its price target for Shopify to $155 from $120, citing significant sequential revenue growth and healthy expansion in operating and free cash flow margins. Mizuho (NYSE:MFG) also raised its price target to $150 from $85, maintaining a Neutral rating due to Shopify’s strong performance. BofA Securities showed increased confidence by raising its price target to $185 from $110, reflecting a 68% upward revision. Similarly, Citizens JMP increased its target to $185 from $135, noting the company’s accelerating growth with GMV growing 29% year-over-year, excluding foreign exchange effects. Meanwhile, Wells Fargo (NYSE:WFC) removed Shopify from its Signature Picks list after the stock delivered substantial returns, selling its 3.1% position in the company. These developments highlight the positive analyst sentiment and strategic moves surrounding Shopify’s recent performance.

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