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Investing.com - DA Davidson raised its price target on Shopify (NASDAQ:SHOP) to $185.00 from $125.00 on Thursday, while maintaining a Buy 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 analysis, the company appears to be trading above its Fair Value.
The research firm cited Shopify’s strong execution of its long-term growth strategy, including international expansion and upmarket initiatives, as key factors behind the increased valuation.
DA Davidson noted that tariff headwinds proved immaterial during the quarter, with Shopify delivering top-line results that exceeded consensus expectations, primarily driven by strength in merchant solutions.
The firm acknowledged that the growth rate disparity between merchant solutions and subscription solutions has a dilutive effect on gross margins, but highlighted Shopify’s disciplined operating expense management.
This expense control led to outperformance in both non-GAAP operating margin and free cash flow, supporting DA Davidson’s new price target based on 17 times projected 2026 revenue.
In other recent news, Shopify’s second-quarter 2025 earnings have prompted several analyst firms to revise their outlook on the company. BMO Capital raised its price target to $180, citing strong results and guidance, and noted accelerated Gross Merchandise Volume (GMV) growth across key regions. Loop Capital also increased its price target to $155, highlighting impressive revenue growth and expansion in cash flow margins. Mizuho (NYSE:MFG) raised its target to $150, acknowledging a 31% year-over-year increase in GMV and revenue, surpassing expectations. BofA Securities took a bullish stance by raising its price target to $185, reflecting confidence in Shopify’s growth and market position. However, Wells Fargo (NYSE:WFC) removed Shopify from its Signature Picks list after a 78% gain, selling its 3.1% stake as analyst coverage shifted. These developments underscore significant investor interest and varied analyst perspectives on Shopify’s performance and future prospects.
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