Shopify (NASDAQ:SHOP) Stock Rating Upgraded by Sanford C. Bernstein

Shopify (NASDAQ:SHOP) (TSE:SHOP) was upgraded by analysts at Sanford C. Bernstein to a “strong-buy” rating in a research note issued to investors on Thursday, Zacks reports.

SHOP has been the subject of several other research reports. Wells Fargo & Company reissued an “overweight” rating and set a $180.00 price objective (up from $144.00) on shares of Shopify in a research report on Friday, August 7th. Citizens Jmp lifted their price target on Shopify from $150.00 to $185.00 and gave the stock a “market outperform” rating in a research report on Thursday, August 6th. UBS Group reiterated a “neutral” rating and set a $145.00 price target (up from $130.00) on shares of Shopify in a report on Thursday, August 6th. Royal Bank Of Canada set a $180.00 price objective on Shopify and gave the company an “outperform” rating in a research report on Wednesday, August 26th. Finally, National Bank Financial restated an “outperform” rating and issued a $180.00 price objective (up from $155.00) on shares of Shopify in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $171.34.

Shopify Stock Performance

NASDAQ:SHOP opened at $128.79 on Thursday. Shopify has a 1 year low of $94.00 and a 1 year high of $182.19. The firm’s fifty day simple moving average is $135.65 and its 200 day simple moving average is $123.14. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $165.71 billion, a PE ratio of 87.02, a PEG ratio of 2.58 and a beta of 2.61.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last released its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.02. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The firm had revenue of $3.58 billion during the quarter. During the same period in the prior year, the firm earned $0.69 EPS. The firm’s revenue was up 33.7% on a year-over-year basis. On average, sell-side analysts anticipate that Shopify will post 1.45 EPS for the current year.

Institutional Trading of Shopify

Hedge funds have recently modified their holdings of the company. Norges Bank bought a new stake in Shopify in the 4th quarter valued at approximately $2,611,797,000. Sands Capital Management LLC grew its stake in shares of Shopify by 37.0% during the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker’s stock worth $1,530,187,000 after acquiring an additional 2,568,765 shares in the last quarter. Invesco Ltd. grew its stake in shares of Shopify by 9.8% during the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after acquiring an additional 1,252,074 shares in the last quarter. Select Equity Group L.P. raised its holdings in shares of Shopify by 92.5% in the second quarter. Select Equity Group L.P. now owns 2,246,473 shares of the software maker’s stock valued at $259,124,000 after purchasing an additional 1,079,494 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. acquired a new stake in shares of Shopify in the first quarter valued at approximately $119,303,000. Institutional investors own 69.27% of the company’s stock.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Bernstein starts coverage at Outperform: Bernstein initiated coverage with a $160 price target, implying more than 26% upside from Thursday’s close. The firm said Shopify is well positioned to lead innovation in commerce, supporting the stock’s premarket strength. Shopify Shares Rise 2.5% as Bernstein Starts Coverage at Outperform
• Positive Sentiment: Operating leverage and AI-commerce potential: StoneX highlighted that Shopify’s headcount has remained flat for more than eight quarters while revenue grew roughly 34%, suggesting improving efficiency. Analysts also view Shopify’s AI commerce initiatives as a potential growth driver rather than an immediate threat. StoneX Backs Shopify on Agent Commerce Data
• Positive Sentiment: Expansion of merchant services: Analysts remain constructive after Shopify’s reported 34% revenue growth, strong gross merchandise volume and $654 million in free cash flow. The planned expansion of Shop Pay Installments into Australia and the addition of Tailwind Labs’ team could strengthen Shopify’s merchant ecosystem and custom-storefront capabilities. Shopify: Buy The Affirm Australia Expansion, But Do Not Chase Blindly
• Neutral Sentiment: Recent selloff leaves technical and valuation questions: SHOP recently fell below a key technical level and remains below its 50-day moving average, although it is above its 200-day average. With a price-to-earnings ratio near 87, investors may be reluctant to chase the rebound despite the bullish $160 target. Turn Shopify Stock Sell-Off Into A Profit Opportunity With This Spread Strategy
• Negative Sentiment: AI-agent competition remains a concern: The launch of consumer AI agents from companies including Meta has weighed on confidence in Shopify, contributing to a sharp recent decline. The bullish view is that these agents may ultimately drive more commerce through Shopify’s infrastructure, but that thesis is not yet proven. Why Meta’s Consumer AI Agent Is Good News for Shopify Stock

Shopify Company Profile

Shopify Inc (NASDAQ:SHOP) is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow retail operations. Its platform enables merchants to create and manage online stores, sell through social media and other digital channels, and support in-person sales through Shopify’s point-of-sale solutions.

Shopify’s products and services include online storefront and website-building tools, payment processing through Shopify Payments, point-of-sale hardware and software, inventory and order management, shipping and fulfillment tools, marketing features, analytics, and financing services for eligible merchants.