Shares of Shopify Inc (NASDAQ:SHOP) reported upbeat second-quarter sales, with at least two analysts raising their price targets.
- JMP Securities analyst Andrew Boone reaffirmed a Market Outperform rating, while raising the price target from $135 to $185.
- JPMorgan analyst Reginald Smith reiterated an Overweight rating, while lifting the price target from $115 to $179.
- Needham analyst Scott Berg maintained a Buy rating and price target of $180.
Check out other analyst stock ratings.
JMP Securities: Shopify’s revenue and GMV (gross merchandize value) growth ex-FX accelerating to 30% and 29% year-on-year, respectively, Boone said. The company is gaining market share in enterprise accounts while macro remains healthy, he added.
"Shopify’s competitive position continues to improve as it adds to its features (checkout kit for AI agents), fixes holes in its product portfolio (multi-entity support in Shopify Payments), and is increasingly global," the analyst wrote. The company's margins could outperform estimates in the back half of 2025 and in 2026, he further stated.
JPMorgan: Shopify delivered a beat across all primary metrics, Smith said. Both GMV and GPV (gross payment volume) growth reached their highest levels since the pandemic, while notional volume growth hit a record high, he added.
The company's third-quarter revenue and gross profit growth guidance exceeded Street estimates. This reflects another quarter of more than 20% gross profit growth and expansion of the free cash flow margin, the analyst stated.
"Shopify continues to fire on all cylinders,” he further wrote. Smith’s team is “particularly encouraged” by new enterprise wins and the company's agentic commerce initiatives.
Needham: Shopify reported strong 2Q merchant solutions growth, driven by international growth, Berg said. Merchant solutions crushed expectations, growing to $2.024 billion. Subscription solutions revenue also grew 16.5% year-on-year to $656 million, he added.
"SHOP’s push upmarket and internationally, from both a product and GTM motion, continues to land well-known brands globally and offers the company a sizable growth opportunity, along with new, untapped markets internationally," the analyst wrote. While the company continues to perform well in Europe, its performance in the APAC (Asia-Pacific) region accelerated versus the previous quarter, he further stated.
SHOP Price Action: Shares of Shopify had risen by 0.29% to $155.35 at the time of publication on Thursday.
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