SHOP Stock Heads For Best Week In A Year: Jefferies Says Shopify 'Cleared A High Bar' After Solid Q2

• Bank of America increased its target to $180 from $150, while Jefferies raised its target to $175.
• Truist highlighted rising adoption of Shopify's AI tools, including Sidekick, as a long-term growth catalyst. 
• President Harley Finkelstein said Shopify processed $116 billion in gross merchandise volume, up 32% year-on-year.

Shopify Inc. (SHOP) stock is on track for its best week in a year after the e-commerce platform delivered a stronger-than-expected second quarter (Q2), fueling fresh Wall Street optimism. Analysts pointed to an AI adoption boost, broad-based growth, and improving execution. 

Why Wall Street Is Raising Shopify Price Targets 

Bank of America lifted its price target for Shopify to $180 from $150 while maintaining a ‘Buy’ recommendation, implying a 25% upside to the stock’s last closing price. The firm said the company’s Q2 results provided further evidence that its diversified growth approach is working and that emerging AI-powered commerce trends could add momentum to its long-term outlook.

Jefferies analyst Samad Samana increased SHOP price target to $175 from $160 and kept a ‘Buy’ rating. The analyst said Shopify 'cleared a high bar' as it exceeded a demanding earnings benchmark, with results showing that growth continues across multiple parts of the business. 

Truist also raised its price target to $180 from $150, citing strength across enterprise customers, international markets and payment services. The firm highlighted rapid growth in AI-related activity, including increased usage of Shopify’s tools such as Sidekick, as evidence that the company is building additional growth opportunities.

Shopify stock edged 0.8% higher overnight, ahead of Thursday, after closing its best day in a year in the regular session. 

Shopify’s Commerce Engine Shows Strength As Merchant Activity Picks Up

During the Q2 earnings call, Shopify President Harley Finkelstein said gross merchandise volume reached $116 billion, representing 32% growth from last year. Revenue climbed 34% to $3.6 billion, while free cash flow margin reached 18%, marking another period of growth across key financial measures.

“Our merchants processed $116 billion this quarter. This is commerce at an extraordinary scale flowing through the platform, and it also tells us that our merchants are thriving.” 

SHOP Stock: Retail View 

On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. 

A user said, “Strong earnings remind everyone why execution matters. Revenue growth is important, but what impressed me most was management's ability to continue expanding the business while improving profitability.”

Another user said, “big day tomorrow and Friday. Should see some good upgrades and future potential! Really hope we get to ATH and blow past it!”

SHOP stock has declined 10% year-to-date. 

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