Shopify price target raised to $39 from $36 at Loop Capital

Loop Capital analyst Anthony Chukumba raised the firm’s price target on Shopify to $39 from $36 but keeps a Hold rating on the shares. The stock historically traded at a significant premium to its closest comparable companies, but after serving as a "pandemic darling", Shopify has substantially underperformed since the beginning of last year, the analyst tells investors in a research note. Chukumba further notes that the premium valuation on Shopify is no longer justified – particularly given its lower "post-pandemic" growth rates and profitability levels as well as the management’s "aggressive" planned investments on Shopify Fulfillment Network.