Shopify wins giant price target raise at CIBC

There’s raising your price target and then there’s raising your price target.

CIBC analyst Todd Coupland saw all he needed to see from Shopify (Shopify Stock Quote, Chart, News, Analysts, Financials NYSE:SHOP) with its third quarter results to make a dramatic shuffle of his call.

On November 12, SHOP reported its Q3, 2024 results. The company posted Operating Income of $283-million on revenue of $2.16-billion, a topline that was up 26% year-over-year.

“Shopify achieved 26% revenue growth and 19% free cash flow margin this quarter, marking our sixth consecutive quarter of greater than 25% revenue growth excluding logistics,” CFO Jeff Hoffmeister said. “Moreover, we have grown free cash flow margin sequentially each quarter this year, consistent with what we delivered last year. These results demonstrate the durability of our business, our multiple avenues for growth and continued discipline of balancing both future growth investment and operational leverage.”

Following the results, as reported by TipRanks, Coupland maintained his “Outperformer” rating and raised his price target on SHOP from $85.00 to $135.00.

“Materially stronger-than-expected” Q3 results and Q4 guidance. Accelerating revenue growth and higher free cash flow margins are “positive for the stock price and its valuation, and confirm Shopify as our top pick for 2024,” Coupland wrote.