MoffettNathanson downgraded Shopify to Neutral from Buy with a price target of $65, down from $74. The analyst sees continued downside risks to forecasts given Shopify’s “bumpy” road ahead. The company’s valuation requires its results to be “clean and better than expected,” the analyst tells investors in a research note. However, the firm fears the near term will be “just the opposite with several occasions of unfavorable revisions to sales and marketing intensity” as Shopify works through a merchant cohort driven by the 2022 and 2023 promotional plans and price cuts. MoffettNathanson remains “excited” about Shopify’s prospects, but says the near-to-medium term has downside risks to numbers.
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