Piper Sandler Upgrades Shopify (SHOP) to Neutral

Piper Sandler analyst Michael Olson upgraded Shopify (NYSE: SHOP) from Underweight to Neutral with a price target of $63.00.

The analyst comments "Even with our negative bias on FY24 profits, we were surprised to see Q1 non-GAAP OpEx of $761M (+13% q/q) with guidance with LSD-MSD q/q growth again in Q2 (GAAP) on top. While our UW positioning has been mostly in relation to elevated expectations, post-Q1 our numbers are going down. We are lowering our below consensus EBIT estimates by 9% to a 13% FY24E margin. With shares trading in the low 60s today, we believe it's appropriate to move to Neutral. We are a far cry from the bullish profitability scenarios floated by investors at the end of last year, and believe current levels reflect a reasonable valuation for Shopify's growth & profitability prospects over the medium-term: high-teens growth CAGR (>2x of revenue in 5 years) and reaching a low-20s effective FCF margin."

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 $62.73 yesterday.

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