Shopify upgraded to Buy at Canaccord after meetings with CFO

As previously reported, Canaccord upgraded Shopify to Buy from Hold with a price target of $70, up from $60, following investor meetings with Shopify’s CFO Jeff Hoffmeister and Head of IR Carrie Gillard. The firm came away from its meetings feeling like the setup for Shopify from here is “pretty good,” and despite what it feels like is a premium, “though arguably warranted valuation,” its “instinct is that SHOP should be a BUY, not a Hold,” the analyst tells investors. E-commerce is a secular growth space and Shopify has become “the de facto standard for SMB and increasingly mid-market/low-enterprise merchants,” says the analyst, who adds that “this should be a good market for many years to come.” The firm believes POS and B2B will become more material drivers of GMV in the years ahead, the analyst added.