DA Davidson raises Shopify stock target to $150, retains Buy rating

On Wednesday, DA Davidson showed continued confidence in Shopify (NYSE:SHOP), with analyst Gil Luria increasing the price target on the company’s shares to $150 from $130, while sustaining a Buy rating. Luria highlighted Shopify’s robust top line growth that surpassed expectations and a year-over-year operating margin increase. The company’s impressive 25.78% revenue growth and "GREAT" financial health score from InvestingPro support this optimistic outlook. Despite these positive indicators, Shopify’s first quarter profitability forecast for 2025 was less optimistic than anticipated, and its growth guidance was in line with consensus, which led to the stock’s performance remaining unchanged after the announcement.

Shopify concluded the year on a high note, with its strategic focus on enterprise and international markets paying off this quarter. With a market capitalization of $155.53 billion and a strong return on equity of 15%, the company has demonstrated its ability to execute effectively. Luria pointed out that these areas show promising undervalued growth opportunities that could lead to significant profitability in the long term compared to current levels. This potential was a key factor in DA Davidson’s decision to revise the price target upwards. Discover more detailed insights and 18 additional ProTips with InvestingPro’s comprehensive research report.

The new price target of $150 is based on a multiple of 14 times DA Davidson’s revenue estimate for Shopify in 2026. Currently trading at a P/E ratio of 76.57 and showing an impressive six-month return of 80.93%, the stock appears overvalued according to InvestingPro’s Fair Value analysis. This adjustment reflects the firm’s belief in Shopify’s continued growth trajectory and its ability to capitalize on its strategic initiatives.

Shopify, a leading e-commerce platform, has been actively expanding its enterprise solutions and exploring international markets to fuel its growth. These efforts seem to be bearing fruit, as reflected in the company’s recent financial performance and the positive outlook from analysts like Luria at DA Davidson.

Investors and market watchers will likely keep a close eye on Shopify’s progress as it works to meet the expectations set by its growth strategies and DA Davidson’s revised price target. The company’s ability to maintain its growth momentum and achieve the projected revenue figures will be critical in determining its success in the competitive e-commerce industry.

In other recent news, Shopify has been the focus of several analyst reviews due to its strong performance in revenue and earnings. Benchmark analysts maintained a Buy rating on Shopify shares, emphasizing the company’s momentum and expanding network effects. They highlighted Shopify’s robust customer cohort momentum, potential growth from enterprise clients, and a significant leverage milestone.

On the other hand, Piper Sandler analyst Clarke Jeffries increased the price target for Shopify stock to $104, while maintaining a Neutral rating. Jeffries noted Shopify’s success in expanding its global presence, with a second consecutive year of international revenue growth exceeding 30%.

JPMorgan also maintained an Overweight rating on Shopify shares and increased the price target to $124. They noted Shopify’s strong volume and revenue growth along with free cash flow margin upside.

In contrast, Truist Securities maintained their Hold rating on Shopify shares, with a steady price target of $120.00. Despite Shopify’s strong performance and potential for further growth, Truist Securities attributed this decision to Shopify’s premium valuation.

Finally, Scotiabank (TSX:BNS) analyst Kevin Krishnaratne increased the price target for Shopify shares to $120, while maintaining a Sector Perform rating. Krishnaratne noted that the company’s merchant solutions take rate exceeded expectations and highlighted Shopify’s strong Free Cash Flow margins.

These are some of the recent developments for Shopify, as reported by various analysts.

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