Cantor Fitzgerald reiterates Neutral rating on Shopify stock at $91

Published 02/07/2025, 12:44
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Investing.com - Cantor Fitzgerald maintained its Neutral rating and $91.00 price target on Shopify (NASDAQ:SHOP) in a research note released Wednesday. The e-commerce giant has demonstrated strong performance with a 70.56% return over the past year and robust revenue growth of 26.52% in the last twelve months.

The firm’s analysis follows Shopify’s recent announcement of a partnership with Coinbase (NASDAQ:COIN) that enables consumers to use USDC stablecoin for payments on Shopify stores.

The USDC payment integration is now available to merchants in early access across the United States and more than 30 other countries, according to Cantor Fitzgerald.

USDC currently stands as the second-largest stablecoin with a market capitalization of $62 billion and experiences average daily trading volume of approximately $10 billion.

Cantor Fitzgerald analyst Deepak Mathivanan provided the assessment of Shopify’s cryptocurrency payment expansion while maintaining the existing price target for the e-commerce platform provider.

In other recent news, Coinbase has launched Coinbase Payments, a stablecoin payment system for ecommerce platforms, with Shopify as its first major partner. This system allows merchants to accept USDC stablecoin payments globally, offering faster settlement times and lower fees compared to traditional methods. Meanwhile, Shopify has seen its stock rating reiterated at Buy by Benchmark, citing potential long-term benefits from its payment processing transitions, including improved conversion visibility and increased payment monetization. DA Davidson also raised its price target for Shopify to $125 from $115, maintaining a Buy rating, and highlighted the company’s resilience and potential growth driven by artificial intelligence.

On the other hand, Cantor Fitzgerald has maintained a Neutral rating on Shopify with a $91 price target, citing concerns over monthly recurring revenue and gross margin compression. The firm pointed out challenges such as pressure on gross merchandise volumes and increased hosting costs affecting subscription margins. Despite these challenges, Cantor Fitzgerald believes Shopify’s fundamental outlook remains solid in the near-to-medium term. These developments reflect the dynamic environment Shopify is navigating as it continues to expand its merchant services and platform capabilities.

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