Macquarie believes Shopify Inc (NYSE: SHOP) shares have about 25 percent upside potentials from the current levels. Analysts Gus Papageorgiou and Rudy Akhavan maintained their Outperform rating and $52 price tag.
The comments come about three weeks ahead of the third quarter closure. Aside from that, analysts' expectations from the company improved in the last one-month period.
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The brokerage listed following five factors to support its investment thesis on Shopify:
- Maintaining more than double the customers of Big Commerce and Volusion put together.
- Shopify enjoys more searches in Google due to its brand image. The brokerage pointed out more than 20x Google searches compared to the other two.
- The company provides a rich ecosystem with more than 300,000 merchant customers, 8,500 referral partners and thousands of apps.
- Shopify's offering differentiates itself from the rest through its omni-channel approach.
- The company's solution provides mutual accommodation thus warding off any concern on the entry of hyperscale players.
In a note, the analysts said, "Its platform makes it easier than ever for merchants to sell through Facebook, increasing eyeballs on that platform, or Amazon, increasing transactions. Shopify's interests are aligned with these larger players and that is why, we believe, both have been accommodating to the platform."
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