Shopify Gets Update, Price Target Raise From Goldman Sachs

Shopify ( SHOP ) received upbeat reviews from Goldman Sachs after the investment bank upgraded its rating on the e-commerce platform’s stock to Buy from Neutral. In addition to the rating change, Goldman Sachs also raised its price target for the stock to $74 from $67.

While Shopify’s stock has come under pressure recently, Goldman Sachs sees it as an opportune time for investors to buy the dip.

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This post was written by Angel Smith

Video transcription

Time for a few conversations of the day.

Goldman Sachs upgrades Shopify to Buy from Neutral today and raises its price target to $74 from $67.

So you know this stock is interesting.

There was some pressure.

It’s down more than 20% so far this year, Goldman says, although OK, that’s an opportunity because they say yes, the investment cycle is taking a toll on margins and more diversified consumer spending.

We know it hurts the stock, but they tell their customers you’re sticking with it.

As Shopify has a significant increase in the share of technology in e-commerce software in e-commerce cycles, they emphasize: In summary, this will drive.

Goldman says.

Sustainable growth at scale.

Goldman does point out some risks, but ultimately they say this was a purchase for their clients.

Yes, and the stock is down about 25% since the beginning of the year.

So they look at it and they see all this stuff that’s maybe priced and not justified given, um, and they talk about the company investing in what they call high stickiness.

In other words, you know, kind of using technology, things that are related to their business.

Over time it will become something creative.

That’s also one of the reasons they like this stock.

Yes, there are some risks, they emphasize.

Listen, they say consumer spending could be worse.

That this would put pressure on GMV’s e-commerce shares could have an impact, they say, in the form of aggressive investment by rival companies.

It’s Amazon, Ago.

But it is not their primary case that they are buyers.