UPDATE: Shopify (SHOP) PT Lowered to $650 at Stifel, 'Rough Period For eCommerce But It Won’t Last Forever'
Stifel analyst Scott Devitt lowered the price target on Shopify (NYSE: SHOP) to $650.00 (from $800.00) while maintaining a Buy rating.
The analyst comments "Shopify reported 1Q results below expectations and provided an outlook for the remainder of the year that implies slower merchant growth. The company also announced the acquisition of Deliverr for $2.1B. The acquisition strengthens Shopify's existing fulfillment capabilities and is expected to contribute ~200bps to FY:22 growth while being dilutive to margins. Like other companies within our eCommerce coverage, Shopify faces a number of near-term headwinds, including challenging compares, the absence of stimulus, ongoing inflation, and the emerging shift in consumer spending towards travel and services. The company remains focused on investing in its fulfillment network and other growth initiatives, and reiterated plans to reinvest all gross profit dollars in 2022. We are lowering our estimates for the remainder of 2022 and expect slower GMV growth as the company works through this period of uncertain macro conditions and broadly weaker demand trends across the group. Our PT falls to $650."