Wedbush Is Bullish On Shopify, Thanks To Apple

  • Wedbush analyst Ygal Arounian lowered the price target on Shopify Inc SHOP to $1,270 from $1,296 and reiterated an Outperform rating on the shares. The price target implies an upside of 42%.
  • The analyst expects Shopify to report strong results in Q4, with more robust growth earlier in the quarter, offsetting slower overall BFCM and December spending. 
  • Questions around Apple Inc AAPL ATT/advertising impacts to merchants, global supply chain challenges limiting upside, and the effects from no stimulus in 2022 are all factors that play a role in 2022, Arounian adds. 
  • As a result, he ticks down his 2022 gross merchandise value estimates. 
  • However, with underperformance in shares, the analyst believes investor sentiment now more than captures those factors. 
  • Shopify will remain a best-in-class e-commerce asset that will continue to take a share in global e-commerce gross merchandise value. 
  • At the same time, its robust set of products will allow for taking rate expansion over time.
  • Price Action: SHOP shares traded lower by 0.96% at $884.79 in the premarket on the last check Friday.
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