Shares of Shopify (NYSE: STORE) jumped as much as 7.7% higher on Friday morning, boosted by a bullish research report from analysts from Wells Fargo.
Wells Fargo’s bullish Shopify analysis
Wells Fargo analyst Andrew Bauch affirmed his overweight rating on the e-commerce services while the price target was raised from $80 to $90 per share. In a note to customers, Bauch said a robust holiday shopping season was already baked into Shopify’s stock price. To move up from here, he is looking for product updates and long-term profit margin improvements.
Investors quickly embraced this optimistic analysis, sending Shopify shares back to prices not seen since early 2022 – the early days of the inflation crisis.
What to look for in Shopify’s upcoming earnings report
Bausch’s recommendation is one of the most bullish takes on Shopify today. Analyst price targets range from $30 to $100 per share, with a modest positive rating but more downgrades than upgrades in recent months.
Indeed, Shopify shares have been soaring higher lately, rising 67% over the past three months on signs of a healthy shopping season. The company pulled its own boots when it reported $9.3 billion in Black Friday/Cyber Monday sales. That’s 24% more than last year and a reliable sign of strong financial results in Shopify’s fourth quarter report, scheduled for Tuesday evening, February 13.
Potential Shopify investors should wait for that quarterly report, keeping a close eye on new product announcements along the way. And let me remind you that Shopify’s operating margin started to decline for the inflation panic started and eventually went up again in the third…