Shopify (NYSE: SHOP) stock jumped 8% in regular trading on Wednesday after DA Davidson reaffirmed its bullish stance, keeping a $150 price target—nearly 50% upside from current levels.
Analyst Gil Luria pointed out that Shopify trades 21% below its 52-week high of $129.38, despite solid fundamentals and accelerating growth, signaling a buying opportunity.
Luria praised Shopify’s strategic investments in sales and marketing, highlighting their effectiveness in expanding the merchant base and boosting payment penetration. The company has already demonstrated strong execution, with a 25.78% revenue growth over the last twelve months.
The analyst also pointed out that management expects mid-twenties year-over-year revenue growth for 2025, along with mid-teens free cash flow (FCF) margins. These projections reflect ongoing investments as Shopify expands into international markets and explores business-to-business opportunities, both of which are expected to drive sustained top-line growth in the years ahead.
Luria further emphasized that Shopify (NYSE: SHOP) is better positioned than many of its e-commerce peers to weather downturns in consumer spending, citing its leading market position and comprehensive platform services, which help shield the company from broader economic pressures.
Additionally, Luria sees significant long-term potential for Shopify to monetize its growing merchant base, potentially leading to higher revenues and enhancing the company’s value beyond its current stock price, reinforcing DA Davidson’s positive outlook.
