On Wednesday, Canadian e-commerce giant Shopify saw its stock soar following a JMP upgrade to ‘Market Outperform’.
Shopify (NYSE: SHOP) stock has soared after JMP Securities’ upgrade. On Wednesday, the California-based full-service investment platform upgraded SHOP from Market Perform to Market Outperform with a $65 per share price target.
JMP eyes Shopify stock as ‘the leader in e-commerce enablement’
Analysts at JMP see an upside gain on Shopify stock after analyzing the OpEx structure among website builders. In addition, the analysts assessed third-party website traffic data and consulted with professional website developers across all platforms before reaching their conclusions.
JMP Analysts Reaffirm Shopify as Leader in E-Commerce Enablement with Growing Share Potential Said,
“While Shopify GMV estimates are to the upside, there is room for more spending discipline. While we acknowledge that macro 2H23 discretionary consumer spending remains a risk and Shopify is in an investment cycle with SFN, the size of the SFN investment is our The debut is lower than anticipated, and we believe an upside to our GMV estimates as Shopify continues to gain traction in the larger enterprise business.
JMP analysts also wrote:
“As our OpEx analysis shows, Shopify has opportunities to execute on cost synergies with Deliverr, and third-party traffic data shows that it continues to take share.”
Following JMP’s development yesterday, Shopify shares soared 3.8%, or 7%, before falling to $46.50. However, as of press time, the Ontario-based e-commerce company’s stock was changing hands at $45.30. As of April 6, Shopify has an average one-year price target of $49.97, with forecasts ranging from a low of $32.32 to a high of $85.50. Furthermore, the average price target of the company is 11.58% higher than the latest reported closing price of over $44.
Shopify stock is also up 20% to 30% this year, buoyed by the upgrade. Furthermore, the company has an estimated annual revenue of $6.7 billion, showing a growth of 21.13%.
Shopify
Shopify is a world-renowned e-commerce facilitator that provides a range of services to online retailers. Retailers can use marketing, payment, shipping and customer engagement tools to start and grow a business. According to Shopify, its platform and services are designed for reliability. Apart from this, the Canadian company also strives to continuously provide better shopping experience for the consumers around the world.
In December 2021, Shopify boasts over 2,000,000 businesses in 175 countries. In addition, the e-commerce powerhouse was among the top 20 largest publicly traded Canadian companies by market cap in July 2022.
Many reputed brands prefer PepsiCo (NASDAQ: PEP), Allbirds (NASDAQ: BIRD), Staples Inc., and Gymshark rely on Shopify.
Avalanche NFT support on Wenli
At the beginning of the year, Shopify onboard support Avalanche for non-fungible tokens (nft, According to the company, merchants can now mint and list their digital assets using the Shopify blockchain app – Wenli. This development negates the need for third party assistants such as OpenSea, Magic Eden, or Rarible.
Founded in 2018, Venly is one of the integrated blockchain app partners with Shopify. The service provides blockchain wallet solutions and plans to include support for Hedera and Immutable X going forward.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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