These are top 10 stocks traded on the Robinhood UK platform in July
DA Davidson raised its price target on Shopify (NASDAQ:SHOP) stock to $125.00 from $115.00 on Monday, while maintaining a Buy rating on the e-commerce platform provider. According to InvestingPro data, analyst targets for Shopify currently range from $85 to $135, with the stock trading near Fair Value levels.
The research firm cited an acceleration in year-over-year merchant growth following Shopify’s better-than-expected first-quarter 2025 results. DA Davidson’s analysis of Shopify’s merchant base indicated the business is "more resilient than feared." This resilience is reflected in the company’s impressive 26.5% revenue growth over the last twelve months and strong liquidity position, with current assets more than triple its short-term obligations.
The firm’s long-term thesis on Shopify remains unchanged, with expectations that the company will extend its market leadership position in the e-commerce sector. DA Davidson specifically highlighted artificial intelligence as a potential catalyst for deepening customer relationships and driving merchant growth. InvestingPro analysis reveals the company maintains a "GREAT" financial health score, with 12 additional exclusive insights available to subscribers.
The new $125 price target represents a multiple of 12 times the firm’s estimated 2026 revenue for Shopify. This valuation reflects DA Davidson’s confidence in the company’s growth trajectory and market position.
Shopify has been focusing on expanding its merchant services and platform capabilities as competition in the e-commerce enablement space continues to intensify among providers serving businesses of various sizes.
In other recent news, Shopify’s financial performance and strategic developments have garnered attention from several analyst firms. DA Davidson reiterated a Buy rating with a $115 price target following Shopify’s first-quarter results for 2025, which exceeded expectations and provided an optimistic outlook for the second quarter. This positive performance came despite broader economic challenges, with notable growth in Europe and payment processing. Benchmark analysts also maintained a Buy rating, setting a $125 price target, citing Shopify’s impressive 24.8% year-over-year Gross Merchandise Volume growth and projected revenue growth for the second quarter. The firm highlighted Shopify’s increasing market share in the global e-commerce space and growth in specific verticals such as apparel and health.
Meanwhile, Cantor Fitzgerald maintained a Neutral rating with a $91 price target, pointing to challenges such as gross margin compression and concerns over Monthly Recurring Revenue. Despite these concerns, the firm believes Shopify’s fundamental outlook remains solid for the near-to-medium term. Additionally, Shopify introduced its Summer ’25 Edition, featuring over 150 upgrades, including AI-driven tools to enhance merchant experiences. This edition aims to simplify storefront customization and improve global selling capabilities, reflecting Shopify’s commitment to innovation and adaptability in the e-commerce sector. These developments indicate a complex yet dynamic landscape for Shopify as it navigates market challenges and opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.