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

Shopify (NASDAQ:SHOP) (TSE:SHOP) had its target price boosted by investment analysts at Citigroup from $150.00 to $196.00 in a research report issued on Thursday,BayStreet.CA reports. The firm presently has a “buy” rating on the software maker’s stock. Citigroup’s target price indicates a potential upside of 33.51% from the company’s current price.

Several other equities research analysts also recently commented on the company. Morgan Stanley downgraded Shopify from an “overweight” rating to a “buy” rating in a report on Monday, July 13th. DA Davidson set a $200.00 price target on Shopify and gave the stock a “buy” rating in a report on Thursday. Benchmark upped their price objective on Shopify from $145.00 to $170.00 and gave the company a “buy” rating in a research note on Thursday. Zacks Research upgraded Shopify from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Shopify in a report on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $169.72.

Shopify Trading Up 1.8%

Shares of Shopify stock traded up $2.56 during trading hours on Thursday, reaching $146.80. 10,717,904 shares of the company’s stock were exchanged, compared to its average volume of 10,830,533. The stock has a market cap of $190.50 billion, a P/E ratio of 145.35, a P/E/G ratio of 2.66 and a beta of 2.58. The company has a 50 day moving average of $117.98 and a two-hundred day moving average of $119.65. Shopify has a fifty-two week low of $94.00 and a fifty-two week high of $182.19.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last released its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.02. Shopify had a return on equity of 12.07% and a net margin of 10.77%.The business had revenue of $3.58 billion for the quarter. During the same quarter in the previous year, the company posted $0.69 EPS. The business’s revenue was up 33.7% on a year-over-year basis. As a group, analysts expect that Shopify will post 1.4 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Shopify

A number of hedge funds have recently added to or reduced their stakes in SHOP. Norges Bank bought a new stake in shares of Shopify during the 4th quarter valued at $2,611,797,000. Sands Capital Management LLC lifted its position in Shopify by 37.0% during the fourth quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker’s stock worth $1,530,187,000 after purchasing an additional 2,568,765 shares during the period. Invesco Ltd. grew its stake in Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after buying an additional 1,252,074 shares in the last quarter. Thrivent Financial for Lutherans increased its holdings in Shopify by 7,207.2% in the 4th quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker’s stock valued at $184,883,000 after buying an additional 1,132,545 shares during the period. Finally, Select Equity Group L.P. increased its holdings in Shopify by 92.5% in the 2nd quarter. Select Equity Group L.P. now owns 2,246,473 shares of the software maker’s stock valued at $259,124,000 after buying an additional 1,079,494 shares during the period. Institutional investors own 69.27% of the company’s stock.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported second-quarter revenue of $3.58 billion, up 33.7% year over year, while adjusted earnings of $0.42 per share exceeded the $0.40 consensus estimate. The company also delivered more than 30% growth in gross merchandise volume, gross profit, and free cash flow, with an 18% free-cash-flow margin. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit and Free Cash Flow
• Positive Sentiment: Third-quarter revenue is forecast at $3.7 billion to $3.8 billion, above the approximately $3.6 billion analyst consensus, implying low-30% growth and signaling continued momentum. Shopify Expects Q3 Revenue Growth in the Low 30s
• Positive Sentiment: AI-related traffic and orders to Shopify merchants tripled year over year, while the company is expanding “agentic commerce” tools and integrating AI across its platform. Investors viewed AI platforms such as ChatGPT and Gemini as potential partners that can send customers to Shopify stores rather than as direct threats. Shopify’s AI Traffic Triples
• Positive Sentiment: Analysts raised their targets following the report: Goldman Sachs to $194, Citizens JMP to $185, Wedbush to $176, and Benchmark to $170. Each maintained a bullish rating, reinforcing expectations for further upside. Shopify Analysts Increase Their Forecasts
• Neutral Sentiment: Cantor Fitzgerald raised its target to $145 but retained a neutral rating, indicating that some analysts remain cautious after the sharp move and Shopify’s premium valuation.

About Shopify

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.