Citigroup Lowers Price Target on Shopify
Analyst Maintains Buy Rating
February 14, 2024, 4:25 AM EST
In a move that could impact the stock's trajectory, Citigroup analyst Tyler Radke has lowered the price target on Shopify (NYSE: SHOP) from $9,700 to $9,000. Despite the target reduction, Radke has maintained a Buy rating on the stock.
Shopify's stock price has been under pressure in recent months amid concerns about slowing growth and increased competition in the e-commerce space. The company's shares have fallen by over 20% since their peak in November 2023.
Radke's decision to lower the price target on Shopify is likely due to a combination of factors, including the company's recent earnings report and the overall market sell-off in technology stocks. Shopify reported fourth-quarter results that fell short of analysts' expectations, with revenue growth slowing to 23% from 42% in the same period last year.
Despite the challenges facing Shopify, Radke remains optimistic about the company's long-term prospects. He believes that Shopify's platform is well-positioned to benefit from the continued growth of e-commerce. He also notes that the company has been making significant investments in new initiatives, such as Shopify Fulfillment Network and Shopify Payments, which could drive future growth.
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