Shopify price increases positive for 2023 outlook, says Citi

Citi analyst Tyler Radke views Shopify’s announced price increases for its core monthly subscription plans as incrementally positive for the company’s 2023 outlook. Shopify announced an average 33% increase for its Basic, Shopify, and Advanced plans from existing rates of $29, $79, and $299 per month, respectively, the analyst tells investors in a research note. In its base case scenario, Citi believes this could translate into a 5% incremental upside for subscription revenue in fiscal 2023 and 1.2% lift in total revenue. The firm keeps a Neutral rating on Shopify with a $35 price target.