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Investing.com - Cantor Fitzgerald raised its price target on Shopify (NASDAQ:SHOP) to $156.00 from $91.00 on Thursday, while maintaining a Neutral rating on the e-commerce platform provider. The stock, currently trading near its 52-week high of $156.39, has delivered an impressive 142% return over the past year according to InvestingPro data.
The price target increase follows what the firm described as "monster" second-quarter results, with Gross Merchandise Volume (GMV) and Gross Profit beating street expectations by mid-single-digit percentages and showing sharp year-over-year acceleration. The company’s revenue grew nearly 29% year-over-year, with a healthy gross profit margin of 49.3%.
Shopify’s third-quarter guidance suggests another strong quarter for GMV growth, though the company plans incremental investments in marketing during the period, which limited near-term profit revisions according to Cantor Fitzgerald.
The anticipated impact of tariff-driven volatilities did not materialize in the second quarter, with trends remaining healthy through July, the firm noted. Shopify’s GMV growth is demonstrating resilience to macroeconomic uncertainties while benefiting from product initiatives including Offline, Enterprise, B2B, and geographic expansion in Europe.
Cantor Fitzgerald revised its fiscal year 2026 EBIT estimate higher by 9% following the strong second-quarter performance, but maintained its Neutral stance as Shopify shares now trade at 100 times the firm’s FY26 estimated GAAP EBIT after Thursday’s rally. This high valuation is reflected in the company’s current P/E ratio of 85.9x and elevated EBITDA multiple, suggesting the stock is trading above its InvestingPro Fair Value.
In other recent news, Shopify’s second-quarter results have captured the attention of several major analyst firms, leading to notable increases in stock price targets. The company reported strong growth in both revenue and gross merchandise volume (GMV), with a 31% year-over-year increase in both metrics. This impressive performance prompted Truist Securities to raise its price target from $95 to $150, while BMO Capital increased its target from $120 to $180, citing robust growth across various regions. Similarly, Stifel adjusted its target from $110 to $150, and JPMorgan raised its target to $179, maintaining an Overweight rating. DA Davidson also upgraded its target to $185, attributing the increase to Shopify’s effective execution of its long-term growth strategy, including international expansion. These developments reflect a positive outlook from analysts, emphasizing Shopify’s recent achievements and future potential.
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