Shopify (SHOP) PT Lowered to $65 at Stifel

Stifel analyst J. Parker Lane lowered the price target on Shopify (NYSE: SHOP) to $65.00 (from $80.00) while maintaining a Hold rating.

The analyst commented, "Shares were under pressure on Wednesday after the company delivered a relatively clean 1Q but an outlook for 2Q that disappointed, particularly on the bottom line. Considering the sizable opportunity the company sees across areas like B2B, POS, and International, management remains committed to increased investments in marketing activities, which will weigh on margins in the near-term but should benefit the top line. Additionally, the company factored in FX headwinds (strong U.S. dollar) and some softness in European spending in its 2Q outlook. Overall, we expect pricing/packaging changes will continue to benefit the top line, while Shopify embarks on multiple product journeys that should extend the growth curve. We maintain our Hold rating and are lowering our target price from $80 to $65."

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