Shopify (SHOP) has room for revenue upside - Oppenheimer

Oppenheimer analyst Ken Wong reiterated an Outperform rating and $65.00 price target on Shopify (NYSE: SHOP), saying their updated revenue cohort analysis suggests there is room for potential upside to consensus estimates for FY23 and FY24 ($6.65B and $8.08B).

The analyst commented, "In the absence of formal FY23 guide, we explore four potential scenarios for FY23 and FY24 revenue growth: 1) Pre-COVID Base case, 2) "New normal," 3) Optimistic and 4) Bearish. We found that if existing cohort growth patterns mirror pre-COVID averages (our current Baseline) and new cohorts added over the next two years continue to moderate from FY22's ~$309M, Shopify should be able to meet or slightly exceed the consensus expectation for FY23. Additionally, 20%+ growth remains in play for FY24. Shopify's cohort growth handicaps contributions from newer solutions, which we see as a source of potential medium-term upside."

For an analyst ratings summary and ratings history on Shopify click here. For more ratings news on Shopify click here.

Shares of Shopify closed at $45.30 yesterday.

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