Needham Reiterates Buy Rating on Shopify (SHOP)

Needham analyst Scott Berg reiterated a Buy rating and $180.00 price target on Shopify (NASDAQ: SHOP).

The analyst commented: "Shopify reported very strong 3Q financial results led by Y/Y GMV growth accelerating for the second straight quarter of +32.0% and was the highest since the Covid impacted periods. North America sales drove the majority of 3Q upside however the company's still burgeoning international opportunity continues to also seeing meaningful uptick as the company rolls out payments to new markets. MRR growth of 10.3% remains tempered due to the changing free trial basis, but we believe MRR growth can jump in 4Q as the company has now lapped these changes. We believe shares are modestly weak after a strong run mainly due to 4Q FCF margin modestly below expectations due to payment timing (i.e. taxes) while GMV and revenue growth likely outperformed Street expectations."

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 $160.94 yesterday.

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