Shopify stock price target raised to $185 from $110 at BofA Securities

Published 07/08/2025, 12:02
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Investing.com - BofA Securities raised its price target on Shopify (NASDAQ:SHOP) to $185.00 from $110.00 on Thursday, while maintaining a Buy rating on the e-commerce platform provider. The stock, currently trading at $154.90, sits near its 52-week high of $156.39.

The price target increase represents a significant 68% upward revision, reflecting BofA’s growing confidence in Shopify’s growth trajectory and market position.

BofA cited accelerating growth across all key metrics as the primary reason for the substantial price target increase, suggesting that Shopify’s growth initiatives are yielding positive results.

The firm highlighted Shopify’s widening gap between its gross merchandise volume (GMV) growth of 29% compared to the broader e-commerce industry’s low double-digit growth, indicating meaningful market share gains.

BofA’s new price target represents a multiple of 76 times its calendar year 2026 estimated enterprise value to free cash flow, up from the previous multiple of 52 times.

In other recent news, Shopify reported strong second-quarter growth in 2025, with its gross merchandise volume (GMV) increasing by 29% year-over-year, excluding foreign exchange effects. This marks a four-point acceleration from the previous quarter, contributing to Citizens JMP raising its price target for Shopify to $185 while maintaining a Market Outperform rating. Benchmark also increased its price target for Shopify to $140, citing a lower weighted average cost of capital and positive revisions to future estimates. Meanwhile, UBS reiterated its Neutral rating with a price target of $110, noting Shopify’s expansion beyond its original North American focus to include Enterprise, International, and In-store Point of Sale markets.

Wells Fargo (NYSE:WFC) recently removed Shopify from its Equity Strategy Signature Picks list after the stock achieved a 78% gain. The bank sold its 3.1% stake in the company following a change in analyst coverage. Shopify continues to expand its e-commerce ecosystem, integrating payments, fulfillment services, and AI-driven merchant tools, which has helped it capture growing demand from businesses moving online. These developments reflect Shopify’s ongoing evolution and strategic positioning in the market.

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