Shopify (NYSE:SHOP) was lifted to Neutral from Sell at UBS by its analysts, who raised the firm's price target on the stock by $30 to $64 per share.
The analysts stated that Shopify's "shape shift" has led to the rating change.
"Although macro remains an issue, today's announcements materially alleviate our other concerns," the analysts wrote.
"The sale of the logistics ops, higher focus on profitability, and the 23% reduction in workforce remove a key source of gross margin dilution, and raise the prospect of significantly higher FCF generation from 2H onwards."
The analysts also noted that the company said things are moving positively in their discussions with Amazon on BwP, "which could suggest they may be closer to getting a deal done with Amazon."
"Although it is still unclear whether a deal will make SHOP whole on gross profit dilution, which we est at mid-to-high SD (link), a resolution could result in a better merchant and consumer experience, and lead to higher volumes that may offset any potential dilution," they concluded.