Bullish Shopify Analyst Says E-Commerce Platform In Early Stages Of Growth

Shopify Inc SHOP has the ability to capture share in e-commerce in the near term and is poised to benefit from the acceleration in e-commerce trends over time, according to Wedbush.

The Shopify Analyst: Ygal Arounian upgraded Shopify from Neutral to Outperform and raised the price target from $998 to $1,300.

The Shopify Takeaways: The shift to e-commerce appears sustainable, as it is largely driven by ongoing changes to consumer habits, Arounian said in the Wednesday upgrade note.

“We continue to like the short-term trends and Shopify’s position to capture them,” the analyst said.

The upgrade reflects longer-term prospects that are “driven by Shopify’s position to capture share of the total retail TAM as it builds out its retail OS,” he said. 

“SFN (Shopify Fulfillment Network) and POS (Shopify Point of Sale) are key initiatives that get Shopify towards its vision of a retail OS, rather than an e-commerce platform,” Arounian said.

Shopify is in the early stages of “significant merchant, GMV, and revenue growth stemming from the shift into a well-built retail OS,” the analyst said. 

SHOP Price Action: Shares of Shopify were trading slightly positive at $1,026 at the time of publication Wednesday. 

Photo courtesy of Shopify. 

Posted In: e-commerceWedbushYgal ArounianAnalyst ColorUpgradesPrice TargetAnalyst Ratings

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.