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Investing.com - Piper Sandler reiterated an Overweight rating and $165.00 price target on Shopify stock (NASDAQ:SHOP), citing the company’s revenue growth potential through 2027. The stock currently trades at $112.56 with a market cap of $146.2 billion, down 7.6% over the past week.
The firm modeled annual revenue cohort data and projects a path for 29% year-over-year revenue growth in 2027, compared to the Street consensus of 24%. The projection does not include potential subscription price increases. Shopify’s recent performance supports this optimism, with revenue growth of 30% in the last twelve months, while 17 analysts have revised their earnings upwards for the upcoming period, according to InvestingPro data.
Piper Sandler noted that subscription price increases could drive growth above 30% in fiscal year 2027. The firm views the strength of older cohorts as an underappreciated component of Shopify’s growth.
The firm recently assumed coverage of the Web Builders space and published proprietary data work. Piper Sandler acknowledged that macro concerns likely limit the stock in the near term.
The Overweight rating is driven by upside potential to 2026 and 2027 revenues from cohort analysis, early-stage opportunities with $50 trillion in global unaddressed GDP for new products, and the company’s move upmarket to Enterprise customers. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with the platform’s comprehensive Pro Research Report offering deeper insights into Shopify’s growth trajectory alongside 15+ additional ProTips for investors.
In other recent news, Shopify reported fourth-quarter results that exceeded analyst expectations, with a 31% year-over-year increase in gross merchandise volume, fueled by strong holiday shopping trends. The company’s revenue for the quarter surpassed consensus estimates by 2.2%, and pro forma operating income beat Street estimates by 7%. Despite these strong results, Cantor Fitzgerald lowered its price target for Shopify to $126, citing valuation concerns while maintaining a Neutral rating. RBC Capital also adjusted its price target from $200 to $170, maintaining an Outperform rating and noting a fundamentally strong quarter, despite some concerns regarding free cash flow and taxes.
Deutsche Bank lowered its price target on Shopify to $175 from $195, maintaining a Buy rating, due to changes in profitability estimates related to tax rates in fiscal years 2026 and 2027. Benchmark reaffirmed its Buy rating with a $145 price target, emphasizing Shopify’s focus on investing in its commerce platform over immediate free cash flow generation. Meanwhile, Citizens reiterated a Market Outperform rating with a $160 target, highlighting positive views among eCommerce enterprise merchants despite some product gaps. These developments reflect varied analyst perspectives on Shopify’s current performance and future prospects.
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