Market Overview

Wedbush Steps To The Shopify Sidelines

Wedbush Steps To The Shopify Sidelines

Shopify Inc (NYSE: SHOP) ha introduced multiple new initiatives to spur growth, but the stock's valuation is already full at current levels, according to Wedbush.

The Analyst

Wedbush's Ygal Arounian downgraded Shopify from Outperform to Neutral with a 12-month price target lifted from $270 to $305.

The Thesis

Shopify unveiled during its Unite presentation a new suite of services likely to improve and differentiate its platform against rivals, Arounian wrote in the note. Most notably, Shopify detailed "big steps forward" to become a full retail operating system backed by a fulfillment network. Shopify will be able to offer merchants on its platform a more level playing field against industry titan, Inc. (NASDAQ: AMZN)

Arounian said Shopify's multiple investments in its business should help it capture a 6% market share of global e-commerce by 2028, or 21% excluding China. This would represent an uptick from 2% and 4%, respectively, in 2019.

Despite a clear path of growth ahead, the stock's 125% gain since the start of 2019 "appropriately reflect the opportunity ahead," according to the analyst.

Price Action

Shares of Shopify traded lower by 6% at $292.81 at time of publication Tuesday. On Monday, the stock was downgraded by Roth Capital from Buy to Neutral.

Related Links:

Shopify Analysts: New Fulfillment Network Meets Demand For Two-Day Shipping

DA Davidson: Shopify Could Sustain Solid Sales Growth For Years To Come

Latest Ratings for SHOP

Oct 2020Roth CapitalMaintainsNeutral
Oct 2020KeyBancMaintainsOverweight
Oct 2020Morgan StanleyInitiates Coverage OnEqual-Weight

View More Analyst Ratings for SHOP
View the Latest Analyst Ratings


Related Articles (SHOP)

View Comments and Join the Discussion!

Posted-In: ecommerce Fulfillment Center Shopify Unite WedbushAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

UMPQJP MorganDowngrades
ONCRPiper SandlerInitiates Coverage On40.0
APTXPiper SandlerInitiates Coverage On10.0
AXLAChardan CapitalInitiates Coverage On16.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at