Shopify Stock In Focus After Baird Raises Price Target To $90: Retail Couldn’t Agree More

Shares of Shopify Inc (SHOP) were trading in the green during Wednesday’s pre-market session after the stock received a price target upgrade.

Baird has reportedly raised its price target to $90 from $79, while keeping an ‘Outperform’ rating on the shares.

Baird reportedly indicated that although Shopify’s shares are typically volatile around quarterly earnings, they continue to like the stock following their latest platform survey, which indicated ongoing healthy rise in core, Plus, international and Enterprise offerings.

Following the update, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (58) from the ‘neutral’ zone a day ago.

Multiple users on Stocktwits have expressed hopes that the stock may hit the $90 mark soon.

During the second-quarter earnings announcement, the company had said its gross merchandise value had risen by 22% to $67.2 billion while revenue rose 21% to $2 billion.

Shopify expects revenue to grow at a low-to-mid-twenties percentage rate on a year-over-year basis for Q3. At the same time, it expects gross margin to be higher by approximately 50 basis points compared to Q2.

Shopify President Harley Finkelstein had reportedly said on a conference call with investors that he thinks the firm’s merchants do seem to be outperforming and doing better than others.

“And I think a big part of the reason that we are not seeing the same thing that others might is because we simply have merchants across a ton of verticals and across a ton of [geographies],” he said, according to a CNBC report.

Shares of the Canadian e-commerce firm have gained nearly 12% since the beginning of the year.

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