Stifel analyst J. Parker Lane resumed coverage of Shopify with a Hold rating and $45 price target. The analyst believes Shopify "sits in front of a sizable market opportunity" in the e-commerce space, driven by a combination of new merchant acquisition and numerous customer expansion paths. However, the investments the company is making to expand its platform capabilities are pressuring gross margins and driving increased spending in the near-term, which is weighing on its ability to drive meaningful profitability and free cash flow in 2023 and 2024, the analyst tells investors in a research note.
Published first on TheFly
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