shares Shopping (NYSE: STORE) Shares were up 7.7% on Friday morning, boosted by bullish analyst research reports. FuGuo bank.
Wells Fargo’s bullish analysis of Shopify
Wells Fargo analyst Andrew Bauch reiterates his Overweight rating e-commerce services stock, while raising its price target to $90 per share from $80. In a note to clients, Bauch said the strong holiday shopping season is already baked into Shopify’s stock price. To move higher from here, he’s looking for product updates and long-term — continued margin improvement.
Investors quickly embraced the optimistic analysis, sending Shopify’s stock price back to levels not seen since early 2022, at the beginning of the inflation crisis.
What to watch in Shopify’s upcoming earnings report
Bausch’s advice is one of the most optimistic for Shopify right now. Analysts have price targets ranging from $30 to $100 per share and ratings are moderately positive, but there have been more downgrades than upgrades in recent months.
Shares of Shopify have certainly been moving higher recently, rising 67% in the past three months on signs of a healthy shopping season. The stock jumped 24% when the company reported $9.3 billion in Black Friday/Cyber Monday sales. The figure is higher than the same period last year and is a solid sign of strong financial performance in Shopify’s fourth-quarter report, scheduled to be released late Tuesday, February 13.
Potential Shopify investors should Let’s wait for the quarterly report, keeping a close eye on new product launches along the way.Let me remind you that Shopify’s operating margins are starting to decline forward Inflation scare sets in, eventually trending upward again in the third quarter, but coming out of a deeply negative trough. The company’s end-market customers appear to be quite sensitive to economic pressure and rising prices, and continued improvement at this point would indicate that Shopify can weather that pressure.
Should you invest $1,000 in Shopify right now?
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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Anders Bylund The Motley Fool has no position in any of the stocks mentioned. The Motley Fool owns and recommends Shopify. Motley Fool has disclosure policy.
Why Shopify Stock Is Suddenly Soaring Today Originally published by The Motley Fool