Truist Financial analyst Terry Tillman has maintained their neutral stance on SHOP stock, giving a Hold rating yesterday.
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Terry Tillman has given his Hold rating due to a combination of factors influencing Shopify’s current market position. Despite Shopify’s strong third-quarter performance, with impressive growth in Gross Merchandise Volume (GMV) and revenue, there are macroeconomic uncertainties that warrant caution. The company’s strategic focus on agentic commerce and its partnerships in data and AI are promising, yet the valuation concerns remain a significant consideration.
Shopify’s financial results showcased robust revenue growth and a solid free cash flow margin. However, the gross margin was slightly below expectations, partly due to a higher mix of lower-margin payments revenue. Additionally, while the operating margin exceeded estimates, the diluted EPS fell short due to unrealized losses on investments. These mixed financial indicators, combined with the broader economic landscape, support the decision to maintain a Hold rating while slightly raising the price target.
According to TipRanks, Tillman is a 2-star analyst with an average return of 0.1% and a 42.97% success rate. Tillman covers the Technology sector, focusing on stocks such as Zeta Global Holdings Corp, Microsoft, and ServiceTitan, Inc. Class A.
In another report released yesterday, Stifel Nicolaus also maintained a Hold rating on the stock with a $175.00 price target.