Shopify price target raised to $80 from $74 at Evercore ISI

Evercore ISI analyst Mark Mahaney raised the firm’s price target on Shopify to $80 from $74 and keeps an In Line rating on the shares following “beat and mostly raise” Q3 EPS results. The real outlier from the EPS results was the profitability inflection, with Non-GAAP Op Income coming in almost 70% or $110M higher than the Street, thanks to a more streamlined cost structure in the wake of material headcount cuts and the sale of the company’s logistics business, the firm says. And with revenue growth of 25% year-over-year and free cash flow margin of 16%, Shopify has returned to Rule of 40 status – 1st time since Q4 2022, Evercore ISI notes.