JP Morgan launches coverage of Shopify

Shares of Canada’s Shopify (Shopify Stock Quote, Chart, News, Analysts, Financials NYSE:SHOP) fell hard after its Q1 results in May, but at least one bank thinks the selloff was overdone.

On May 8, SHOP reported its Q1, 2024 results. The company posted Gross Profit of $957-million on Gross Merchandise Volume of $60.9-billion, which was up 23% year-over-year.

“You’re seeing the strongest version of Shopify in our history. Our outstanding Q1 performance is clear proof of our dedication to the new shape of Shopify, our commitment to operating with a consistent team size, and our focus on building for the long-term to deliver both growth and profitability,” CEO Harley Finkelstein said. “We are building a 100-year company, and we will continue to remain fiercely agile, capitalizing on every opportunity that accelerates the success of our merchants, enables us to continue to build world-class products, and enhances operational efficiency for better returns.”

After falling for multiple days around the results, shares of SHOP have begun to battle back. And, as reported in the Globe and Mail, JP Morgan June 11 got on board with an initiation of coverage report that tagged an “Overweight” rating and (US) $74.00 price target on the stock.

“We size Shopify’s global serviceable ecommerce GMV opportunity ex-China, Amazon, Apple and Walmart at $1.9-trillion, which translates into a nearly $60-billion serviceable revenue opportunity,” the bank wrote.