SHOP stock climbed 4.5% on November 1, 2021, after analysts weighed in on the company’s latest quarterly financials.
Shopify initiated with a Hold at Deutsche Bank
Deutsche Bank analyst Bhavin Shah initiated coverage of Shopify with a Hold rating and $1,650 price target. While the analyst remains bullish on Shopify’s fundamental prospects over the medium and long term, he sees “limited near-term catalysts,” challenging comparisons, and potential global supply chain issues. With that taken into account, he sees the current valuation reflecting much of the underlying opportunity.
SHOP stock price target lowered to $1700 from $1800 at Susquehanna
On October 29, 2021, Susquehanna analyst John Coffey lowered the firm’s price target on SHOP stock to $1700 from $1800 and kept a Positive rating on the shares. The analyst likes the setup through 2023 as they focus on new markets and strategies to further monetize existing customers while the e-commerce surge from the pandemic lockdown seems to be over.
SHOP stock price target lowered to $1,400 from $1,500 at Mizuho
On October 29, 2021, Mizuho analyst Siti Panigrahi lowered the firm’s price target on SHOP stock to $1,400 from $1,500 and kept a Neutral rating on the shares. The company’s Q3 results missed consensus expectations across the board, Panigrahi tells investors in a research note. While the miss was broadly expected by investors and reflected in the share prices heading into Q3 results, there is now more significant risk in Q4 given the uncertainty around supply chain constraints and weakened ad targeting due to digital privacy reforms, says the analyst.
Shopify to benefit from intersection of software and payments, says Credit Suisse
On October 28, 2021, Credit Suisse analyst Timothy Chiodo maintained a Neutral rating and $1,700 price target on SHOP stock following the company’s Q3 results, telling investors in a research note that Q3 GMV came in below the Street as stimulus benefits from earlier in the year rolled off and a degree of shopping returned to in-store. Chiodo continues to view Shopify as one of the most well-positioned platforms to benefit from the intersection of software and payments and the embedding of monetization- and ecosystem-enhancing financial services.
SHOP stock price target lowered to $1,550 from $1,650 at Stifel
On October 28, 2021, Stifel analyst Scott Devitt lowered the firm’s price target on Shopify to $1,550 from $1,650 and kept a Buy rating on the shares. The analyst said the company reported Q3 results below expectations. GMV growth in the quarter was roughly 440 basis points below consensus as shifts in consumer spending back to experiences and offline retail had a notable impact. Devitt added that, given near-term uncertainty, he is taking a more cautious approach to his estimates.
Oppenheimer says Outperform thesis intact after Shopify’s ‘mixed’ Q3 report
On October 28, 2021, Oppenheimer analyst Brian Schwartz said Shopify (SHOP) had a “mixed” quarterly report, with a Q3 miss driven by a shortfall in gross merchandise value. However, according to Schwartz, the GMV shortfall “was not a big surprise” given Adobe (ADBE) management had already called out GMV weakness in its Q3 report. Positives in the report included a record implied take-rate that lends good support to his take-rate inflation thesis, the Payments business growing 46% against a challenging year-over-year comparison and strong management commentary on the Q4 demand outlook, said the analyst, who reiterates an Outperform rating on SHOP stock with a $1,700 price target.
VIDEO Shopify Earnings Q3! Amazing Growth as Usual! (Shopify Stock 2021) $SHOP
James Lynn says, “In this video, we go over the most recent earnings and talk about Shopify’s amazing growth over the last five years and if I think it will continue. Their growth has been incredible, and I’m curious to see where they go from here.”
SHOP Stock Technical Analysis
The large players volume is rising, and we had a recent Pocket Pivot (blue dot). Both the short-term and long-term trends are positive. This is a very positive sign. Although SHOP has an excellent technical rating, it does not offer a high-quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when SHOP stock is a good entry.