Analyst Ratings Coverage
Recent analyst ratings for Shopify as of May 5, 2023:
- RBC raised its target price to CAD 75 and maintained an “Outperform” rating.
- TD Securities raised its target price to CAD 81 and maintained a “Hold” rating.
- ATB Capital Markets raised its target price to CAD 90.
- Barclays raised its target price to CAD 50.
- Scotia Capital maintained a “Sector Perform” rating and a target price of CAD 62.
- STA Research maintained a “Buy” rating and a target price of CAD 75.
SHOP Stock Forecast & Analysis
According to the Shopify Inc stock forecast from 8 analysts, the average target price for the next 12 months is CAD 69.00. This represents a potential downside of about 10.96% from the current stock price of CAD 77.65. The average analyst rating for Shopify Inc is “Strong Buy,” which suggests that the majority of analysts believe the stock is likely to outperform.
According to Stock Target Advisor’s own analysis, their rating for Shopify Inc is “Slightly Bearish.” This rating is based on 3 positive signals and 6 negative signals, indicating that there may be some downside potential in the stock price in the near future.
Despite this, Shopify Inc’s stock price has been performing well over the past week, month, and year. Over the past week, the stock price has increased by 20.07%, while over the past month, it has increased by 21.29%. Over the last year, the stock price has increased by 25.59%. It’s worth noting that past performance is not always indicative of future results, and the stock price could still fluctuate significantly in the future.
While the average analyst rating is optimistic, there are some fundamental indications that the stock price may be overvalued.
Technical Analysis
Shopify ‘s stock has been trading in a technical range between $60 to $85 CAD for the past year, but it is now approaching a critical resistance level at $86 CAD. If Shopify is able to break through this resistance level, it could potentially test the $110 CAD resistance level.
The current price action of Shopify suggests that the stock may be ready for a breakout to the upside. Over the past few weeks, the stock has been trending higher and has been making higher lows and higher highs. This is a bullish sign and suggests that the stock is gaining momentum and could be ready to break out of its technical range.
The key resistance level to watch is $86 CAD. If Shopify is able to break through this level, it could potentially test the $110 CAD resistance level. The stock has not been at this level since Jan 2022, and a break above this level could be a significant bullish signal for the stock.
There are several factors that could contribute to a potential breakout in Shopify. The company has been posting strong revenue growth and has been expanding its platform to include new features and services.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
