Analysts Slash Price Targets on Shopify

Analysts slashed their price targets on Shopify Inc. post Q4 results over international expansion and recalibrated investments. Jefferies analyst Samad Samana lowered the PT to $1,350 from $1,800 (80.8 percent upside) and reiterated a Buy. Shopify’s guidance commentary implies a return to pre-COVID GMV seasonality and that its operating and capital expenses will “ramp dramatically over the next several years,” which will limit intermediate-term profitability. Stifel analyst Scott Devitt lowered the PT to $1,000 from $1,300 (33.9 percent upside) and maintained a Buy. Shopify plans to reinvest all gross profit dollars in 2022 through accelerated OpEx spending and CapEx of $200 million. In the intermediate-term, the company expects $1 billion in CapEx between 2023 and 2024 related to the development of SFN. Evercore ISI analyst Mark Mahaney lowered the PT to $1,000 from $1,770 and kept an Outperform. Piper Sandler analyst Brent Bracelin lowered the PT to $900 from $1,400 (20.5 percent upside) and kept an Overweight. …

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