UPDATE: Shopify (SHOP) PT Lowered to $37 at Citi

(Updated - July 26, 2022 5:15 AM EDT)

Citi analyst Tyler Radke lowered the price target on Shopify (NYSE: SHOP) to $37.00 (from $43.20) while maintaining a Neutral rating.

The analyst comments "Shopify’s Q2 results are likely to be impacted by a continuation of e-commerce normalization and fresh new economic headwinds. Intra-Q data points continue to point to a challenging demand backdrop with credit card data softening and web traffic trends decelerating. We are cutting our estimates below the street and expect that headline numbers could come in a touch below consensus with a more cautious outlook. We maintain our Neutral/High Risk rating as we still see downside risk to estimates and see SHOP as having a more discretionary / cyclical demand profile relative to peers. Given the lack of valuation support, particularly with margins likely to be breakeven or worse this year, we worry shares could remain range bound, despite some favorable new product/partnership announcements throughout Q2. Our target prices moves lower to $37 on updated estimates."

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