- Wedbush analyst Ygal Arounian lowered the price target on Shopify Inc (NYSE:SHOP) to $1,270 from $1,296 and reiterated an Outperform rating on the shares. The price target implies an upside of 42%.
- The analyst expects Shopify to report strong results in Q4, with more robust growth earlier in the quarter, offsetting slower overall BFCM and December spending.
- Questions around Apple Inc (NASDAQ:AAPL) ATT/advertising impacts to merchants, global supply chain challenges limiting upside, and the effects from no stimulus in 2022 are all factors that play a role in 2022, Arounian adds.
- As a result, he ticks down his 2022 gross merchandise value estimates.
- However, with underperformance in shares, the analyst believes investor sentiment now more than captures those factors.
- Shopify will remain a best-in-class e-commerce asset that will continue to take a share in global e-commerce gross merchandise value.
- At the same time, its robust set of products will allow for taking rate expansion over time.
- Price Action: SHOP shares traded lower by 0.96% at $884.79 in the premarket on the last check Friday.
