Citi lowered the firm’s price target on Shopify to $93 from $96 and keeps a Neutral rating on the shares. The company reported a “consistently strong” Q4 with outsized revenue growth, demonstrating further share gains and that Shopify’s unique e-commerce “flywheel” continues to attract and grow new merchants above industry growth levels, the analyst tells investors in a research note. However, the firm says the weaker profitability outlook for Q1 and a modest miss on take rate expansion weighed on shares. Citi would not be surprised to see shares “take a breather” after the near 50% run since the last earnings print. It awaits a better entry point.
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