RBC Capital Markets Says Strong Growth May Drive Shopify's Profitability Upside

Benzinga2023-07-21

RBC Capital Markets analyst Paul Treiber reiterates Outperform rating on Shopify Inc, with a price target of $75.The analyst predicts Shopify Plus and Shopify POS to see strong growth in Q2, which, ...

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EBITDA margins to expand from -1.5% Q1 to 12.1% 2H/FY23, above consensus at 10.0%. The increase stems from Shopify’s recent 23% headcount reduction, divestiture of logistics, and pricing increases. These apart, Shopify’s large TAM, take rate economics, and strong product execution will likely help sustain positive investor sentiment.Management sees AI as a material catalyst and envisions Shopify becoming a copilot for entrepreneurship, implying that the TAM for Shopify’s core offering will likely expand further, Treiber adds.Price Action: SHOP shares traded lower by 4.09% to $65.44 on Thursday and rose slightly in premarket trading on Friday.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1158951265"}