Bernstein Analyst Sees Shopify Stock Rebound Amid Sector Sell-Off
Shopify's stock has been underperforming the broader market this year. It fell from its August high of $158 to $128 in recent weeks, dropping 19% since January while the S&P 500 gained more than 10%. This downturn has prompted some analysts to reassess their outlook.
Mark Shmulik, a Bernstein analyst, believes that Shopify's fundamentals remain strong. Despite sector-wide sell-offs affecting software companies, known as 'SaaSpocalypse', he notes that the company's revenue and profitability continue to rise.
Shmulik predicts that Shopify will rebound, with a target price of $160, implying a 25% upside from its current level. He cited the expansion of the market enabled by AI technology, stating that 'for whatever headwinds Shopify faces, AI further reduces the entry barriers for the next generation of builders and expands the market.'
Other top analysts are also bullish on Shopify stock, with Piper Sandler's James Callahan increasing his target to $180 and Rosenblatt Securities' Scott Devitt hiking to $175. Royal Bank of Canada sees the stock rising to $180.