Shopify stock earns another Buy rating following its recent pullback

Shopify’s value rose on Friday after an Evercore ISI analyst said it was time to buy shares of the e-commerce company, which has seen its stock decline this year.

Evercore’s Mark Mahaney upgraded Shopify to Outperform from In-Line and set a $75 price target on the stock, implying a 16% upside from the stock’s closing price of $64.69 on Thursday. The analyst wrote in a research note that the stock’s recent declines represent an attractive entry point.

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Shopify’s value rose on Friday after an Evercore ISI analyst said it was time to buy shares of the e-commerce company, which has seen its stock decline this year.

Shopify shares rose 1.6% to $65.70 on Friday. This year they are down 16%. The company’s shares fell 19% on May 8 after the company reported a surprise first-quarter loss and said the sale of its logistics business would weigh on second-quarter revenue growth.

Mahaney believes the company will bounce back and said investors should get in on the action now.

“We believe SHOP stock has a very resilient long thesis given its very large TAM (total addressable market), very strong competitive position and high-end market opportunities (as confirmed by our recent channel checks), clear track record of successful product innovation (measured in part by continually increasing onboarding rates) and the potential for significant profitability growth,” he wrote in a research note.

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Mahaney’s improvement wasn’t the only one this week. JP Morgan analysts started rating Shopify on June 11 with an Overweight rating and a $74 price target. They said they “believe Shopify’s product diversity, ease of use and scale are a distinct competitive advantage that will continue to drive industry-leading growth.”

Of the 49 analysts surveyed by FactSet, 27 gave Shopify a Buy rating, 22 gave it a Hold rating and none recommended selling the stock.

Write to Angela Palumbo at [email protected]