Shopify downgraded to Peer Perform from Outperform at Wolfe Research
The Fly

Shopify downgraded to Peer Perform from Outperform at Wolfe Research

Wolfe Research analyst Deepak Mathivanan downgraded Shopify to Peer Perform from Outperform without a price target. The analyst also downgraded the e-commerce sector to Market Weight from Market Overweight. Given the high penetration, e-commerce growth is likely to show high sensitivity to retail sales and consumer spending trends during the macroeconomic slowdown in 2023, Mathivanan tells investors in a research note. In addition, sales growth for many companies in the space benefited from inflationary tailwinds in 2022, which should be a less significant factor in 2023, says the analyst. Mathivanan also thinks consensus estimates "are still elevated in many cases." He thinks growth deceleration under a weakening macro could have high sensitivity on Shopify’s multiple.

Published first on TheFly

See the top stocks recommended by analysts >>

Read More on SHOP:

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App