Shopify upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank analyst Bhavin Shah upgraded Shopify to Buy from Hold with a price target of $50, up from $40. The analyst’s conversations with industry constituents including various Shopify agencies and partners suggest enterprise adoption of Shopify Plus should accelerate in 2023. This should enable Shopify to once again outpace overall U.S. e-commerce growth, the firm contends. The analyst expects 2023 to be another volatile year for software stocks with investors seeking confirmation of a bottom as fundamentals "likely deteriorate further." The firm prefers earlier cycle names within software for 2023 over later ones, and tells investors to "selectively begin picking away at quality growth."