In the preceding three months, 26 analysts have released ratings for Shopify (NASDAQ:SHOP), presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 10 | 10 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 5 | 6 | 6 | 0 | 0 |
| 3M Ago | 1 | 4 | 3 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $153.12, a high estimate of $195.00, and a low estimate of $110.00. This current average reflects an increase of 28.28% from the previous average price target of $119.36.
Investigating Analyst Ratings: An Elaborate Study
The perception of Shopify by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Daniel Chan | TD Securities | Raises | Hold | $156.00 | $130.00 |
| Tyler Radke | Citigroup | Raises | Buy | $195.00 | $155.00 |
| Mark Mahaney | Evercore ISI Group | Raises | Outperform | $170.00 | $120.00 |
| David Hynes | Canaccord Genuity | Raises | Buy | $165.00 | $115.00 |
| Reginald Smith | JP Morgan | Raises | Overweight | $179.00 | $115.00 |
| Kevin Krishnaratne | Scotiabank | Raises | Sector Perform | $150.00 | $115.00 |
| Gabriela Borges | Goldman Sachs | Raises | Buy | $176.00 | $120.00 |
| Timothy Chiodo | UBS | Raises | Neutral | $145.00 | $110.00 |
| Parker Lane | Stifel | Raises | Hold | $150.00 | $110.00 |
| Paul Treiber | RBC Capital | Raises | Outperform | $170.00 | $145.00 |
| Terry Tillman | Truist Securities | Raises | Hold | $150.00 | $95.00 |
| Justin Patterson | Keybanc | Raises | Overweight | $175.00 | $145.00 |
| Trevor Young | Barclays | Raises | Equal-Weight | $120.00 | $94.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $185.00 | $135.00 |
| Ken Wong | Oppenheimer | Raises | Outperform | $180.00 | $145.00 |
| Siti Panigrahi | Mizuho | Raises | Neutral | $150.00 | $85.00 |
| Mark Zgutowicz | Benchmark | Raises | Buy | $190.00 | $140.00 |
| Mark Zgutowicz | Benchmark | Raises | Buy | $140.00 | $125.00 |
| Kevin Krishnaratne | Scotiabank | Raises | Sector Perform | $115.00 | $90.00 |
| Ken Wong | Oppenheimer | Raises | Outperform | $145.00 | $125.00 |
| Justin Patterson | Keybanc | Raises | Overweight | $145.00 | $115.00 |
| Anthony Chukumba | Loop Capital | Maintains | Hold | $120.00 | $120.00 |
| Todd Coupland | CIBC | Raises | Outperformer | $145.00 | $125.00 |
| Parker Lane | Stifel | Raises | Hold | $110.00 | $100.00 |
| Colin Sebastian | Baird | Raises | Outperform | $120.00 | $110.00 |
| Scott Berg | Needham | Announces | Buy | $135.00 | - |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Shopify. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Shopify compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Shopify's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Shopify's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Shopify analyst ratings.
Unveiling the Story Behind Shopify
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.
Key Indicators: Shopify's Financial Health
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Shopify displayed positive results in 3M. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 31.05%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Shopify's net margin excels beyond industry benchmarks, reaching 33.81%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.82%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Shopify's ROA excels beyond industry benchmarks, reaching 6.48%. This signifies efficient management of assets and strong financial health.
Debt Management: Shopify's debt-to-equity ratio is below the industry average. With a ratio of 0.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
How Are Analyst Ratings Determined?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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