UBS reiterates Neutral rating on Shopify stock with $110 price target

Investing.com - UBS maintained its Neutral rating on Shopify (NASDAQ:SHOP) with a price target of $110.00, according to a research note released Monday. The stock, currently trading at $127.80, has delivered an impressive 107% return over the past year and is approaching its 52-week high of $129.38.

UBS analyst Timothy Chiodo highlighted that Shopify has evolved beyond its origins as a North American-focused small and medium-sized business e-commerce platform. The company is now experiencing success across three total addressable market (TAM) expansive growth pillars: Enterprise, International, and In-store Point of Sale (EI&I).

The UBS report specifically examines Shopify’s enterprise retail e-commerce opportunity, including quantitative analysis of potential contributions to Gross Merchandise Volume (GMV) growth at various market share levels over the next decade.

The research note also covers Shopify’s enterprise segment offering, competitive landscape analysis, illustrative enterprise segment unit economics, and a compiled list of selected Shopify enterprise customers.

UBS indicated that all Excel analysis is available in their Shopify model and by request, providing additional capabilities, points, and research for investors interested in deeper examination of the company’s business model and growth prospects.

In other recent news, Shopify reported a significant year-over-year growth of 75.99%, driven by its expanding e-commerce ecosystem that includes integrated payments, fulfillment services, and AI-driven merchant tools. This growth aligns with the company’s strategy to capture the increasing demand from businesses transitioning online. In addition, KeyBanc Capital Markets raised its price target for Shopify to $145.00, maintaining an Overweight rating due to expectations of stronger-than-anticipated quarterly results. The firm cited stable macroeconomic conditions, product innovation, and international market progress as factors contributing to this positive outlook. Citizens JMP also reiterated its Market Outperform rating on Shopify, highlighting improved discoverability of niche products. In related developments, WEBUY GLOBAL announced a partnership with Shopify, which will integrate WEBUY’s group-buying platform with Shopify’s merchant network. This collaboration aims to expand WEBUY’s reach to millions of additional online retailers, potentially scaling its social e-commerce model in North America. These recent developments underscore the dynamic growth and strategic partnerships within the e-commerce sector.

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