On Wednesday, Canadian e-commerce giant Shopify saw its shares swell after upgrading its JMP to a “Market Outperform.”
Shopify (NYSE: SHOP) stock is up after JMP Securities’ upgrade. On Wednesday, the California-based full-service investment platform upgraded SHOP from Market Perform to Market Outperform with a $65 share price target.
JMP Sees Shopify Equity as ‘Leading E-commerce Enablers’
JMP analysts see bullishness for Shopify stock after analyzing OpEx architecture across website builders. Additionally, the analysts evaluated third-party website traffic data and consulted with professional website developers across platforms before reaching their conclusion.
In reaffirming Shopify as a leader in e-commerce enablement with the potential to grow equity, JMP analysts He said:
“Shopify’s GMV estimates have an upward trend, while there is room for more discipline in expenses. While we recognize that macro continues to be a risk to consumer discretionary spending in the second half of 2013 and Shopify is in an investment cycle with SFN, the volume of SFN investments is lower than we initially feared, and we believe there is an upside to our GMV outlook as Shopify gains momentum with larger companies.”
As JMP analysts wrote:
“This is as our OpEx analysis suggests, Shopify has the opportunity to execute on cost synergies with Deliverr, and third-party traffic data indicates that it continues to participate.”
After yesterday’s JMP development, Shopify shares rose 7% before paring down to 3.8%, or $46.50. However, as of press time, the Ontario e-commerce company’s stock was trading at $45.30. As of April 6th, the average price target for Shopify for one year was $49.97, with projections ranging from $32.32 to $85.50. Additionally, the company’s average price target is an increase of 11.58% from its last reported closing price of over $44.
Shopify stock is also up 20% to 30% this year, buoyed by the upgrade. In addition, the company’s expected annual revenue is 6.7 billion US dollars, an increase of 21.13%.
Shopify
Shopify is a world-renowned e-commerce facilitator that offers online retailers many services. Retailers can use marketing, payments, shipping, and customer engagement tools to start and grow businesses. According to Shopify, its platform and services are built for reliability. In addition, the Canadian company is also striving to constantly offer consumers around the world a better shopping experience.
In December 2021, Shopify boasts more than 2,000,000 businesses in 175 countries. Also, the e-commerce powerhouse was among the top 20 listed Canadian companies by market capitalization in July 2022.
Many reputable brands like PepsiCo (NASDAQ: PEP), Allbirds (NASDAQ: BIRD), Staples Inc, and Gymshark rely on Shopify.
Avalanche NFT support on Venly
At the start of the year, Shopify had onboard support for Avalanche’s non-fungible tokens (NFTs). According to the company, merchants can now mint and list their digital assets using the Shopify blockchain app – Venly. This development eliminates the need for third party facilitators such as OpenSea, Magic Eden or Rarible.
Founded in 2018, Venly is one of Shopify’s integrated blockchain app partners. The service offers blockchain wallet solutions and plans to integrate support for Hedera and immutable X.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
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