Backed by expansion opportunities, Shopify Inc (NASDAQ:SHOP) continues to "demonstrate solid growth,” according to TD Cowen.
The Shopify Analyst: Analyst Daniel Chan resumed coverage with a Hold rating, while raising the price target from $130 to $156.
The Shopify Thesis: With strong execution across Europe, the company achieved 42% year-on-year growth in gross merchandise value (GMV) on the continent in the second quarter, implying market share gains, Chan said in the reinitiation note.
Check out other analyst stock ratings.
Shopify's momentum is likely to continue into the mid-term, as the company's presence in these markets is still in the early stages, he added.
The analyst expressed concern, however, about a likely slowdown in retail spending in the near term, given the recent labor metrics and potential tariff-driven price increases.
There are also concerns around whether Shopify will be able to benefit from "a potential shift in consumer buying patterns using AI," he further wrote.
SHOP Price Action: Shopify shares were up 6.64% at $161.34 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Read More:
Photo: Piotr Swat / Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
