Shopify (SHOP) PT Lowered to $90 at Citi

Citi analyst Tyler Radke lowered the price target on Shopify (NYSE: SHOP) to $90.00 (from $97.00) while maintaining a Buy rating.

The analyst comments "We remain buyers of SHOP following a very strong 2Q which assuaged investor concerns on the top-line and bottom line. Against a choppy macro/consumer spending environment, the outsized strength shows the differentiating aspects of the SHOP platform powered by strong new merchant acquisition, share gains (inc. upmarket/B2B), SSS, and continued payments penetration of GMV. Operating leverage during the quarter (~280bps OPM beat) was a bright spot for investors as the company generates better return on S&M spend. With a 3Q implied EBIT outlook ~25% higher than consensus backed by a reaccelerating top-line and flattening opex trends, we expect significant positive 2H/2025 revisions, and we expect shares to come back in favor as profitability is set to inflect in 2025 (Citi projects ~60% EBIT growth vs. consensus’ ~43% y/y). We maintain our Buy-HR rating/Focus List idea, and our PT moves to $90 on higher outer year estimates and updated regression inputs."

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