Benzinga - Shares of Shopify Inc (NYSE: SHOP) were climbing higher on Wednesday, even after Needham analyst Anna Andreeva expressed concern about the company’s outlook.
Shopify continues to take market share in the commerce enablement space, according to JMP Securities.
The Shopify Analyst: Andrew Boone upgraded the rating for Shopify from Market Perform to Market Outperform, while establishing a price target of $65.
The Shopify Thesis: There is upside to Shopify’s gross merchandise value (GMV) estimates and there is “room for greater expense discipline,” Boone said in the upgrade note.
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“While we acknowledge macro remains a risk for 2H23 discretionary consumer spending and Shopify is in an investment cycle with SFN, the size of SFN investments are less than we initially feared and we believe there is upside to our GMV projections as Shopify is gaining traction with larger enterprise businesses,” the analyst wrote.
He added, “Shopify has the opportunity to execute on cost synergies with Deliverr and third-party traffic data suggests it continues to take share.”
SHOP Price Action: Shares of Shopify were up 3.93% to $46.39 at the time of publication on Wednesday
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