Morgan Stanley Analyst Predicts Continued Growth for Shopify, Stock Upgrade to $85
In a recent report, Morgan Stanley analyst Keith Weiss expressed confidence in the future growth potential of Shopify (NYSE: SHOP), a leading e-commerce platform. Since mid-2020, Shopify has consistently reported annual revenue gains above 20%, quarter after quarter. Weiss believes this rapid growth trend could continue through 2030.
As a result of his optimistic outlook, Weiss upgraded the stock to overweight from hold and raised its price target to $85 per share. This represents a significant increase from its current trading price of around $69.
One of the key reasons behind Wall Street’s expectations for continued growth from Shopify is the company’s significant market share in the e-commerce industry. Shopify is responsible for approximately 11% of total e-commerce in America, leaving plenty of room for further expansion.
Moreover, Shopify has been successful in onboarding established clients like Mattel, On Running, and Carrier, in addition to small businesses. This diversification of clients and expansion into new markets bodes well for the company’s future growth prospects.
While Shopify’s current valuation already reflects high growth expectations, Weiss believes that the company’s enterprise retail and B2B opportunities justify the $85 price target. However, investors should be aware of the risks associated with investing in a high-growth stock like Shopify.
In conclusion, Weiss’s bullish outlook on Shopify’s future growth potential has sparked optimism among investors and analysts alike. With a price target of $85 per share, Shopify continues to be a stock to watch in the e-commerce industry.