After plummeting from about $77.50 to a low of $60.64 on weak guidance, Shopify (SHOP) has become incredibly oversold. Helping, analysts at JMP Securities just upgrade the stock to an outperform rating, with a price target of $80.
“Our upgrade is driven by the potential for new merchant cohorts to contribute in 2025 and beyond, Plus, subscription price increases coming on in 2H24, and our belief that the company remains a best-in-class eCommerce platform that is taking share and has multiple adjacencies across financial services, advertising, and merchant services,” said the firm, as quoted by CNBC.
With a good amount of fear now priced into the SHOP stock, we’d like to see it refill its bearish gap at around $77.50 near term.