These are top 10 stocks traded on the Robinhood UK platform in July
On Friday, Cantor Fitzgerald analyst Deepak Mathivanan increased the price target on Shopify (NASDAQ:SHOP) shares to $91 from the previous $80, while maintaining a Neutral rating on the stock. Currently trading at $90.04, Shopify has seen analyst targets ranging from $80 to $151, with a consensus recommendation leaning towards Buy. According to InvestingPro data, the stock appears fairly valued based on its proprietary Fair Value model. The revision follows Shopify’s first-quarter results, which showed Gross Merchandise Volume (GMV) and Gross Profit (GP) figures that were consistent with analysts’ expectations as per data from Visible Alpha.
Shopify’s guidance for the second quarter of 2025 estimates revenue growth in the mid-20% year-over-year range, compared to the Street’s projection of a 22% increase year-over-year. This follows the company’s impressive 26.5% revenue growth in the last twelve months, with a robust gross profit margin of nearly 50%. The company anticipates a high-teens year-over-year growth in GP dollars for the second quarter, which suggests a margin compression of approximately three points. This is largely attributed to a shift in the Payments mix, the integration of PayPal (NASDAQ:PYPL), which is currently not rated, and the expiration of a one-time partnership.
During the earnings call, Shopify highlighted that GMV has continued to show strength in April and May. The company also noted that while some merchants are adjusting their pricing to account for tariffs, these changes are not widespread. Shopify’s customer base, which tends to consist of higher-income individuals, is expected to be less affected by demand fluctuations resulting from tariffs.
In addition to the financial updates, Shopify reported ongoing success in several key areas of its business, including payments, the Shop App, international expansion, and Enterprise solutions. InvestingPro analysis shows the company maintains excellent financial health with a strong current ratio of 3.71 and operates with moderate debt levels. These strategic initiatives continue to be a focus for the company as it moves forward. For deeper insights into Shopify’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks.
Cantor Fitzgerald’s updated 12-month price target of $91 reflects the firm’s assessment of Shopify’s current position and market prospects, while the Neutral rating indicates a wait-and-see approach to the stock’s future performance. The stock has delivered an impressive 50.5% return over the past year, though it currently trades at relatively high earnings and revenue multiples, according to InvestingPro metrics.
In other recent news, Shopify’s first-quarter results exceeded expectations, with a 23% year-over-year increase in Gross Merchandise Volume, marking the seventh consecutive quarter of over 20% growth. Despite this strong performance, Truist Securities lowered Shopify’s price target to $95, maintaining a Hold rating due to potential future impacts from global trade and tariff uncertainties. Benchmark also adjusted its outlook, cutting the price target to $125 while keeping a Buy rating, citing concerns over spending weaknesses and retail media softness in key merchant categories. Meanwhile, BMO Capital Markets initiated coverage of Shopify with an Outperform rating and a $120 price target, highlighting the company’s improved growth and operating leverage following the divestment of its logistics operations. BMO Capital emphasized Shopify’s adaptability as a competitive advantage, particularly against potential tariff-related disruptions. Additionally, Shopify announced the details of its 2025 Annual General Meeting, scheduled to take place at its Ottawa headquarters, as part of its routine corporate governance practices. The meeting’s agenda and materials have been filed with both Canadian and U.S. regulatory authorities. These developments reflect a diverse range of analyst perspectives and strategic updates for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.