Shopify (NASDAQ:SHOP) Stock Price Expected to Rise, Benchmark Analyst Says

Shopify (NASDAQ:SHOP) (TSE:SHOP) had its target price increased by equities researchers at Benchmark from $145.00 to $170.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a “buy” rating on the software maker’s stock. Benchmark’s price objective would suggest a potential upside of 12.16% from the stock’s previous close.

Several other research firms have also recently weighed in on SHOP. Stifel Nicolaus set a $150.00 price objective on Shopify and gave the stock a “buy” rating in a research report on Thursday, July 9th. Truist Financial set a $180.00 target price on Shopify and gave the company a “buy” rating in a research report on Wednesday. Wells Fargo & Company cut their target price on Shopify from $166.00 to $144.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 6th. Citizens Jmp upped their price target on Shopify from $150.00 to $185.00 and gave the stock a “market outperform” rating in a research report on Thursday. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $180.00 price target on shares of Shopify in a research note on Tuesday, May 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $170.72.

Shopify Trading Up 2.8%

Shares of NASDAQ:SHOP opened at $151.57 on Thursday. The firm has a market cap of $196.69 billion, a price-to-earnings ratio of 102.41, a PEG ratio of 3.17 and a beta of 2.58. Shopify has a 12 month low of $94.00 and a 12 month high of $182.19. The company’s fifty day simple moving average is $119.29 and its 200 day simple moving average is $119.81. The company has a quick ratio of 6.20, a current ratio of 5.35 and a debt-to-equity ratio of 0.01.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.02. The firm had revenue of $3.58 billion during the quarter. Shopify had a net margin of 14.53% and a return on equity of 12.58%. Shopify’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.69 earnings per share. As a group, research analysts forecast that Shopify will post 1.4 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SHOP. Kingdom Financial Group LLC. acquired a new position in shares of Shopify during the 4th quarter worth approximately $26,000. Curio Wealth LLC acquired a new stake in shares of Shopify in the 4th quarter valued at approximately $27,000. Evolution Wealth Management Inc. grew its stake in shares of Shopify by 203.9% in the first quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker’s stock valued at $27,000 after buying an additional 155 shares in the last quarter. Graney & King LLC acquired a new position in Shopify during the first quarter worth $27,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new position in Shopify during the fourth quarter worth $29,000. 69.27% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q2 results exceeded expectations: Shopify reported revenue of approximately $3.58 billion, up 33.7% year over year, and earnings of $0.42 per share versus consensus of $0.40. Growth was supported by strong gross merchandise volume (GMV), expanding payments penetration and improved profitability. SHOP Q2 Earnings Beat Estimates
• Positive Sentiment: Healthy forward guidance: Management expects low-30% revenue growth in the third quarter, reinforcing the view that merchant demand and platform momentum remain strong. Free-cash-flow margins of about 18% also highlighted operating leverage. Shopify Q3 Revenue Outlook
• Positive Sentiment: AI is emerging as a growth catalyst: Shopify executives said traffic and orders originating from AI platforms, including ChatGPT and Gemini, have tripled over the past year. The company is investing in agentic commerce infrastructure, suggesting AI is expanding rather than displacing Shopify’s merchant ecosystem. Shopify Executive Discusses AI and Entrepreneurship
• Positive Sentiment: Analysts raised targets: Goldman Sachs, Citigroup, JPMorgan, Wedbush, BMO and Benchmark all increased their price targets following the results, with several maintaining buy or outperform ratings. These revisions provide additional support for the rally and reflect improved growth expectations.
• Neutral Sentiment: Valuation is demanding: After the earnings-driven advance, Shopify trades at a high earnings multiple. Continued upside likely depends on the company sustaining 30%-plus growth and converting AI and GMV momentum into durable profits. Shopify Q2 Risks and Opportunities
• Negative Sentiment: Some caution remains: Cantor Fitzgerald maintained a neutral rating despite raising its target to $145, while commentary has warned that elevated expectations and the stock’s volatility could limit further gains. Cathie Wood’s reported trimming of Shopify holdings also represents a modest negative sentiment signal.

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.