Investing.com – KeyBanc reiterated an Overweight rating on Shopify Inc. (NASDAQ:SHOP) with a $160.00 price target. Trading at $107.63, the stock appears undervalued according to InvestingPro analysis, which could support the analyst’s bullish stance.
The firm said Shopify’s first-quarter results showed AI is creating more opportunities for merchants on the platform.
KeyBanc noted the company did not raise its second-quarter guidance more substantially, which could raise near-term concerns given tough comparisons. The firm said commentary around Sidekick, Ads, and geographic expansion demonstrates fundamentals remain strong. The company’s robust 30% revenue growth over the last twelve months and “GREAT” Financial Health score on InvestingPro support this positive outlook.
KeyBanc’s estimates for Shopify did not change materially following the results.
The firm expects Shopify to sustain mid-20% gross merchandise volume growth through 2027.
In other recent news, Shopify reported its first-quarter 2026 earnings, revealing a revenue increase to $3.2 billion, which exceeded analyst expectations of $3.09 billion. This represents a 34% year-over-year revenue growth, or 32% when excluding foreign exchange benefits. The company also reported a gross merchandise volume of $100.7 billion, marking a 35% increase from the previous year and beating the consensus estimate of $98.7 billion. Despite these positive results, several firms adjusted their price targets for Shopify. Citizens lowered its target to $150 from $160, while DA Davidson and Jefferies both reduced their targets to $140, citing valuation and deceleration concerns. Evercore ISI, however, maintained an Outperform rating with a target of $135. Additionally, Shopify’s GAAP operating margin improved to 12.1%, up 345 basis points year-over-year. These developments highlight the company’s continued growth and operational improvements.
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