Shopify initiated with an Overweight at JPMorgan

JPMorgan analyst Reginald Smith initiated coverage of Shopify with an Overweight rating and $74 price target. Shopify is a leading e-commerce enablement and infrastructure platform powering over 2M online merchants across 175 countries, the analyst tells investors in a research note. The firm believes the company’s product breadth, ease of use, and scale are “distinct competitive advantages that will continue to fuel industry-leading growth.” It models 18% compounded revenue growth through 2026 as Shopify benefits from the secular shift toward e-commerce and scales growth initiatives. JPMorgan thinks the recent pullback creates an attractive entry opportunity for new investors.