Cantor maintains Shopify stock neutral with $120 target

On Wednesday, Cantor Fitzgerald maintained its Neutral rating on Shopify stock (NYSE:SHOP) with a price target of $120.00, placing it in the middle of the broader analyst range of $78-$175. The firm’s analyst noted that Shopify delivered a robust performance in the fourth quarter, with revenue growth of 23.47% year-over-year, but the outlook for the first quarter of 2025 raised some questions regarding the company’s growth and profitability trajectory in the upcoming quarters. Despite this, the analyst highlighted Shopify’s strong product roadmap in key areas such as Enterprise solutions, Plus, advertising, and payments, which could potentially moderate any deceleration in the near term.

Shopify shares saw an uptick, rising by 3% earlier today, contrasting with a slight decline in the Nasdaq, which fell by 0.40%. This increase in Shopify’s stock price occurred after the company reported its fourth-quarter results, which presented a mixed picture in terms of key performance indicators (KPIs).

The analyst’s commentary suggested that while the fourth quarter showed strength for Shopify, there is an ongoing discussion about how the company will balance growth with profitability looking forward. With a market capitalization of $160 billion and trading at a P/E ratio of 77.35, InvestingPro analysis suggests the stock is currently trading above its Fair Value. The areas of Enterprise, Plus, advertising, and payments were identified as critical components of Shopify’s strategy to maintain its momentum.

Despite the mixed KPIs, investors showed optimism in Shopify’s stock performance today. The company’s shares outperformed the broader market as reflected in the Nasdaq’s performance.

In closing, Cantor Fitzgerald’s stance on Shopify remains unchanged, with the firm reiterating its neutral position and a price target of $120. The analyst’s comments provide a snapshot of Shopify’s current situation, acknowledging both the positive aspects of their recent quarter and the challenges that lie ahead.

In other recent news, Shopify has seen a series of adjustments to its stock price target by multiple analyst firms following its strong fourth-quarter performance in 2024. Mizuho (NYSE:MFG) Securities increased Shopify’s stock price target from $105 to $110, maintaining a Neutral rating. JMP Securities raised its price target to $135, sustaining a Market Outperform rating. TD Securities lifted its price target from $100 to $130, while Stifel increased its target to $120 from $115, both firms maintaining a Hold rating. Lastly, Canaccord Genuity raised the price target to $140 from $125, reaffirming a Buy rating.

Shopify’s Q4 results showed significant growth across various initiatives, regions, and merchant sizes, surpassing analyst predictions in gross merchandise volume (GMV), revenue, and free cash flow (FCF). The company’s management has reiterated its commitment to sustaining a high-teens FCF margin level, focusing on reinvesting in the business to fuel future growth.

Despite the robust performance, Shopify’s first-quarter revenue guidance for 2025 was set to match expectations, considering several factors such as the transition from one-month to three-month subscription paid trials, foreign exchange fluctuations, and the impact of a leap year. These recent developments reflect the ongoing analysis and adjustments made by various analyst firms in response to Shopify’s financial performance and future prospects.

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