Figma Shares Indicated To Open $105/$110
On Monday, DA Davidson reiterated its Buy rating on Shopify (NYSE:SHOP) shares, maintaining a $150.00 price target. Gil Luria, an analyst at the firm, highlighted Shopify’s significant drop from its 52-week high of $129.38, with the stock currently trading at $94.85. Despite reporting robust fourth-quarter results for 2024, the stock has experienced notable volatility, as indicated by InvestingPro data. The results emphasized Shopify’s dominant position as the preferred platform for merchants across all regions and sizes.
Luria praised Shopify’s strategic investments in sales and marketing, which have proven effective in expanding the merchant base and boosting payment penetration. The company has already demonstrated strong execution with revenue growth of 25.78% in the last twelve months. He noted that management expects mid-twenties year-over-year revenue growth and mid-teens free cash flow (FCF) margins for 2025. These projections take into account the ongoing investments as the company aims to leverage international and business-to-business opportunities, which are anticipated to sustain robust top-line growth in subsequent years.
The analyst also pointed out that compared to other e-commerce entities, Shopify is less vulnerable to dips in consumer spending due to its leading market position and comprehensive platform services. This resilience is reflected in the company’s "GREAT" financial health score on InvestingPro, with particularly strong metrics in growth and cash flow. Luria believes that Shopify’s advantage provides a degree of insulation from broader consumer market challenges faced by its peers.
Additionally, Luria sees a considerable opportunity for Shopify to further monetize its expanding merchant base over the long term, which could enhance the company’s value beyond the current stock levels. This potential for increased revenue generation serves as a foundation for the firm’s continued positive outlook on Shopify’s stock. Want deeper insights? InvestingPro offers 16 additional exclusive tips and comprehensive analysis through its Pro Research Report, helping investors make more informed decisions about this prominent IT Services player.
In other recent news, Shopify has been the focus of several analyst updates and strategic developments. Phillip Securities adjusted its rating on Shopify from Buy to Accumulate while raising the price target to $140, following a strong fourth-quarter performance that exceeded profit expectations. RBC Capital Markets also increased its price target to $145, maintaining an Outperform rating, citing Shopify’s market share expansion and revenue surpassing analyst estimates. DA Davidson raised its price target to $150 and retained a Buy rating, highlighting Shopify’s robust growth and strategic focus on enterprise and international markets. Benchmark maintained its Buy rating with a $150 target, emphasizing Shopify’s momentum in revenue and earnings and its potential for growth through enterprise clients.
Meanwhile, Affirm announced an expanded partnership with Shopify, solidifying its role as the exclusive provider of Shop Pay Installments in the U.S. and Canada, with plans to enter the UK market. This move is expected to benefit both companies and the merchants within the Shopify ecosystem by offering flexible payment solutions. Affirm’s CEO, Max Levchin, noted the successful history of collaboration between the companies, emphasizing the growth potential of Shop Pay Installments. These recent developments reflect ongoing confidence in Shopify’s strategic initiatives and its ability to maintain a strong growth trajectory in the competitive e-commerce landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.