Why This Shopify Analyst Is Bearish, Even After Blockbuster Black Friday Performance
Portfolio Pulse from Priya Nigam
Shopify Inc (NYSE:SHOP) shares dipped slightly after a rally due to strong Black Friday sales. Analyst Clarke Jeffries from Piper Sandler downgraded Shopify from Neutral to Underweight and reduced the price target from $58 to $56, citing an untenable valuation and overly aggressive growth and profit assumptions. Jeffries believes that while Shopify is a commerce platform giant, its fundamentals are expected to moderate in 2024.
November 28, 2023 | 6:45 pm
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Shopify's stock was downgraded by Piper Sandler analyst Clarke Jeffries from Neutral to Underweight with a price target cut from $58 to $56, despite strong Black Friday sales, due to concerns over valuation and future growth moderation.
The downgrade by a notable analyst from a major firm like Piper Sandler can have a significant negative impact on investor sentiment in the short term. The reduction in price target and the change to an Underweight rating suggest that the analyst sees limited upside potential and possibly more downside risk, which could lead to a decrease in stock price as investors adjust their expectations.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100