Benchmark Reiterates Buy Rating on Shopify (SHOP)

Benchmark analyst Mark Zgutowicz reiterated a Buy rating and $145.00 price target on Shopify (NASDAQ: SHOP).

The analyst commented, "We reiterate our Buy rating and $145 DCF-based PT in front of SHOP’s 2Q print on Wed., 8/5, BMO –see earnings cheat sheet on pg. 2. Recall the 2Q guide, not 1Q, punished the shares in May: high-20%’s revenue growth y/y on a ~0.5pt FX tailwind (vs. >2pts in 1Q) plus a tough comp. We model 2Q revenue of $3.450B and GMV of $111.2B, with our FX-neutral 2QE GMV implying a +70bps sequential acceleration (2-year stack) vs. a -70bps deceleration in 1Q. FCF optics remain pressured by higher cash taxes/effective tax rate this year, partially offset by a ~50bps merchant cash advance accounting tailwind in 2Q. With 2Q gross profit guided +mid-20%’s y/y and opex at 35%-36% of revenue, we again pay particular attention to FCF against our ‘26E 16.8% FCF margin (-60bps y/y) and any change to management’s relative containment of present FCF margins to reinvest in marketing and AI infrastructure, particularly after announcing its +$3B increased buyback (6/2) to $5B."

For an analyst ratings summary and ratings history on Shopify click here. For more ratings news on Shopify click here.

Shares of Shopify closed at $130.28 yesterday.

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