Wedbush Forecasts Strong Price Appreciation for Shopify (NASDAQ:SHOP) Stock

Shopify (NASDAQ:SHOP) (TSE:SHOP) had its price target increased by equities researchers at Wedbush from $155.00 to $176.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has an “outperform” rating on the software maker’s stock. Wedbush’s target price would suggest a potential upside of 16.12% from the stock’s previous close.

A number of other analysts have also recently weighed in on the company. Royal Bank Of Canada set a $180.00 price target on Shopify and gave the company an “outperform” rating in a research note on Thursday. Citizens Jmp increased their price objective on Shopify from $150.00 to $185.00 and gave the company a “market outperform” rating in a report on Thursday. DA Davidson set a $200.00 target price on Shopify and gave the stock a “buy” rating in a research note on Thursday. BMO Capital Markets initiated coverage on shares of Shopify in a research note on Friday, July 10th. They issued a “market perform” rating on the stock. Finally, Evercore restated an “outperform” rating and set a $175.00 price objective (up from $135.00) on shares of Shopify in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Shopify presently has an average rating of “Moderate Buy” and a consensus target price of $170.72.

Shopify Trading Up 2.8%

NASDAQ SHOP opened at $151.57 on Thursday. Shopify has a 52 week low of $94.00 and a 52 week high of $182.19. The firm has a 50 day moving average of $119.29 and a two-hundred day moving average of $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. The stock has a market capitalization of $196.69 billion, a PE ratio of 102.41, a price-to-earnings-growth ratio of 3.17 and a beta of 2.58.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings data on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.02. The business had revenue of $3.58 billion for 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% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.69 earnings per share. As a group, research analysts expect that Shopify will post 1.4 EPS for the current fiscal year.

Hedge Funds Weigh In On Shopify

Institutional investors have recently modified their holdings of the business. M&T Bank Corp raised its stake in Shopify by 37.1% during the fourth quarter. M&T Bank Corp now owns 81,082 shares of the software maker’s stock valued at $13,051,000 after buying an additional 21,945 shares in the last quarter. Triasima Portfolio Management inc. grew its position in shares of Shopify by 11.0% in the 4th quarter. Triasima Portfolio Management inc. now owns 182,338 shares of the software maker’s stock worth $29,398,000 after acquiring an additional 18,028 shares in the last quarter. Assetmark Inc. increased its holdings in shares of Shopify by 6.7% in the 4th quarter. Assetmark Inc. now owns 213,583 shares of the software maker’s stock valued at $34,380,000 after acquiring an additional 13,415 shares during the last quarter. Norris Financial Group LLC bought a new stake in shares of Shopify in the 1st quarter valued at approximately $1,586,000. Finally, Mirae Asset Global Investments Co. Ltd. raised its position in shares of Shopify by 12.8% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 526,114 shares of the software maker’s stock valued at $84,689,000 after acquiring an additional 59,745 shares in the last quarter. 69.27% of the stock is owned by institutional investors and hedge funds.

More Shopify News

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.