William Blair analyst Arjun Bhatia has reiterated their bullish stance on SHOP stock, giving a Buy rating yesterday.
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Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Shopify’s impressive growth and strategic positioning. Shopify has demonstrated consistent growth acceleration, with constant-currency GMV and revenue growth rates both exceeding 30%. This growth is supported by strong performance across various segments, including enterprise, Shop Pay, B2B, offline, and international markets.
Furthermore, Shopify is proactively adapting to the evolving landscape of commerce by investing in agentic commerce and forming partnerships with AI platforms like ChatGPT and Perplexity. These initiatives are expected to keep Shopify relevant and competitive as the market changes. Despite the premium valuation of Shopify’s stock, Bhatia believes that the company’s strong market position and growth potential justify this premium, making it a long-term winner in the commerce market.
According to TipRanks, Bhatia is a 2-star analyst with an average return of 0.9% and a 42.69% success rate. Bhatia covers the Technology sector, focusing on stocks such as Atlassian, Sprout Social, and InterDigital.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $170.00 price target.