On Tuesday, Oppenheimer maintained its Outperform rating on Shopify (NYSE: SHOP) with a steady price target of $130.00. According to InvestingPro data, 26 analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $78 to $145.
The firm's analysis highlighted Shopify's sales momentum during the Black Friday Cyber Monday (BFCM) period, where sales growth accelerated from 22% year-over-year through Black Friday to 24% year-over-year, reaching $11.5 billion.
This performance was slightly below the anticipated 25% growth but aligned with the consensus for the fourth quarter Gross Merchandise Volume (GMV) at 24%. The company's recent performance reflects its broader growth trajectory, with InvestingPro showing a robust revenue growth of 23.47% over the last twelve months.
Shopify's BFCM sales, which represent a significant portion of the company's fourth quarter GMV, suggest a potential for the full-quarter GMV to hit approximately $92.9 billion. This estimate is slightly above the Street's projection of $92.2 billion. The analysis by Oppenheimer suggests that the earlier start to the holiday shopping season, as reported by merchants and partners, could spread out the GMV more evenly throughout the fourth quarter.
The performance over the BFCM weekend, especially given the tougher comparisons with the previous year, is considered a mild positive by Oppenheimer. The firm anticipates this sales acceleration could reinforce the likelihood of Shopify achieving its mid-20%+ revenue growth target for the quarter.
With a current market capitalization of $146 billion and trading near its 52-week high, Shopify maintains a strong financial health score of "GREAT" according to InvestingPro's comprehensive analysis, which includes over 30 key financial metrics and expert insights available to subscribers.
Oppenheimer's outlook remains optimistic, reflecting confidence in the e-commerce platform's ability to meet its revenue growth objectives. The firm's reiteration of the Outperform rating and price target underscores its view that Shopify will continue to perform well in the current fiscal quarter.
In other recent news, Shopify Inc (NYSE:SHOP). reported record-breaking sales of $11.5 billion during the Black Friday-Cyber Monday weekend, a 24% increase from the previous year. Over 76 million consumers worldwide made purchases from Shopify-powered brands. Analysts from various financial firms, including Deutsche Bank (ETR:DBKGn) and Piper Sandler, have been closely monitoring these developments. Deutsche Bank reaffirmed a Buy rating on Shopify, expressing confidence in the company's fourth-quarter Gross Merchandise Volume (GMV) expectations.
Meanwhile, Piper Sandler maintained a Neutral rating on Shopify, focusing on the impact of the company's partnership with PayPal (NASDAQ:PYPL). The firm estimated a low single-digit impact on Shopify's growth due to this partnership, roughly 3% by their best estimate. On the other hand, Truist Securities, Loop Capital, and Scotiabank (TSX:BNS) all raised their price targets for Shopify, reflecting their recognition of the company's strong performance and potential for further growth.
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