Shopify earnings selloff a buying opportunity, says CIBC

CIBC analyst Todd Coupland lowered the firm’s price target on Shopify to $85 from $100 and keeps an Outperformer rating on the shares. The company’s Q1 results were in line with expectations but its Q2 outlook for revenue and margins was weaker than expected, the analyst tells investors in a research note. The firm says investors are wrestling with the idea of slowing growth and heightened level of investment required to sustain Shopify’s sales. It views the 19% post-earnings share pullback as a buying opportunity, saying investors should do so knowing the context of lower growth, free cash flow margins, and valuation.