tl;dr
Shopify (NYSE:SHOP) surged in early trading on Friday following Morgan Stanley's upgrade of the e-commerce stock to Overweight from Equal-weight. The firm believes Shopify is well-positioned to sustain a 20% CAGR through FY30, supported by successful moves up market and expanding international trac...
Shopify (NYSE:SHOP) surged in early trading on Friday following Morgan Stanley's upgrade of the e-commerce stock to Overweight from Equal-weight. The firm believes Shopify is well-positioned to sustain a 20% CAGR through FY30, supported by successful moves up market and expanding international traction. The valuation on SHOP was deemed more reasonable on a normalized free cash flow basis. Analyst Keith Weiss noted that despite concerns about the sustainability of Shopify's operating margin expansion post-Q4 results, the firm believes investor expectations have adjusted too severely. He mentioned that commentary indicating modest headcount expansion in FY24 still leaves room for further realization of operating leverage and free cash flow growth in the business. "We update our model to reflect more durable GMV strength and ~160bps/~170bps of better operating margin expansion in FY24/FY25, resulting from stable headcount expansion," highlighted Weiss. Morgan Stanley raised its price target on Shopify to $85. Shopify rose 2.88% in premarket trading to $71.51, within the 52-week range of $45.50 to $91.57. The e-commerce stock is still down close to 11% on a year-to-date basis and trades below its 100-day moving average of $77.11.
More about Shopify Inc
Shopify Inc Summary Shopify Inc
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
Details
Industry: Technology
Sector: Services-Prepackaged Software
Market Cap: 89,472,582,000
Current Price: $695.1
Dividend Yield: None
EPS: 0.1
P/E Ratio: 5.51
Beta: 0.0187
Volume: 7,060,000
Revenue: 7,060,000,000
Net Income: $82.42
Debt to Equity: 4.858
Quick Ratio: 0.236
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