Shopify

Shopify stock has been on a tear this year, gaining more than 120% in a move that has pushed its valuation above those of its peers. That lofty price tag may work against the shares heading into the new year, says JMP Securities. Analyst Andrew Boone downgraded the stock to Market Perform from Outperform on Monday, removing his target for the stock price. At the heart of his call, he said, is the fact that Shopify’s valuation leaves little room for error as the company is undergoing several strategic shifts. The stock has gained 122% this year. The shares now trade hands at 74.1 times forward earnings, according to FactSet. “We think execution must be perfect from here, while our estimates versus consensus are mixed looking to 2024 and 2025,” Boone wrote in a note to clients Monday. In late November, Piper Sandler also downgraded the stock, citing an “untenable […]

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our 12-month target at $75 on EV/sales of 9.7x our 2025 sales estimate, below historical, but above peers due to growth and a greater focus on profitability/FCF. We increase our 2023 EPS to $0.71 from $0.63 and 2024’s to $1.23 from $0.94. We start 2025 EPS at $1.52. SHOP posted Q3 EPS of $0.24 vs. a $0.02 loss and better than the $0.14 EPS consensus. Sales grew a better-than-expected 25% and impressive 30% ex-logistics sale (500-bp headwind). Merchant Solutions rose 24%, driven by +22% GMV growth and Shopify Payments momentum (58% of GMV processed vs. 54% last year), while Subscriptions increased 29% from previous price hikes. Gross margin widened to 52.6% from 48.5%, as SHOP sees greater leverage post sale of its highly-fixed cost logistics

Shopify (NYSE:SHOP) said it expects Q3 revenue to grow at a low-20s percentage rate on a year-over-year basis, which translates into a year-over-year growth rate in the mid-20s when adjusting for the 300 basis points to 400 basis points headwind from the sale of Shopify’s logistics businesses.

Shopify (NYSE:SHOP) reported Q2 adjusted diluted earnings  of $0.14 per share, compared with a loss of $0.03 a year earlier. Analysts polled by Capital IQ expected $0.05 normalized. Revenue for the quarter that ended June 30 was $1.69 billion, up from $1.3 billion a year earlier. Analysts surveyed by Capital IQ expected $1.63 billion. The company said it expects Q3 revenue to grow at a low-20s percentage rate on a year-over-year basis, which translates into a year-over-year growth rate in the mid-20s when adjusting for the 300 basis points to 400 basis points headwind from the sale of Shopify’s logistics businesses.