Shares of Shopify (SHOP 0.20%) were moving higher today after the e-commerce software superstar picked up some new fans on Wall Street.
Shopify scored a buy rating from Needham, and another analyst raised their price target on the growth stock.
As of 1:48 p.m. ET, the stock was up 4.2% on the news.
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Shopify earns more cheers
Needham became the latest research firm to weigh in positively on Shopify, calling the stock a buy with a price target of $135.
The firm observed that Shopify was in the middle of a durable growth cycle, benefiting from continuing growth in consumer spending, despite weak sentiment, and it's likely to benefit from the recently signed U.S. tax bill.
Additionally, Baird raised its price target on the stock from $110 to $120, and maintained an outperform rating as analyst Colin Sebastian said that its merchant business remains healthy despite headwinds on its monthly recurring revenue.
What's next for Shopify
Shopify has a lot of exposure to the business cycle and broader consumer demand, but its continued growth in the face of concerns about a trade war is a positive sign.
The opportunity in front of the company still seems sizable as it innovates and invests in AI, and continues to attract new merchants to the platform.
Investors will want to pay attention tomorrow morning when the June Consumer Price Index is released, as that could move the stock. Investors are still anxious to see if tariffs have had any impact on prices thus far. A few weeks later, Shopify will report second-quarter earnings. Analysts expect revenue to jump 24.5% to $2.55 billion, and see adjusted earnings per share improving from $0.26 to $0.29.
