Shopify (SHOP) Cut to “Underweight” at Morgan Stanley

Shopify (NYSE:SHOP) (TSE:SHOP) was downgraded by equities researchers at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a research report issued to clients and investors on Tuesday, MarketBeat.com reports. They currently have a $209.00 price target on the software maker’s stock, up from their previous price target of $173.00. Morgan Stanley’s price target points to a potential downside of 20.88% from the stock’s current price. The analysts noted that the move was a valuation call.

A number of other equities analysts also recently issued reports on SHOP. Zacks Investment Research raised Shopify from a “strong sell” rating to a “hold” rating and set a $241.00 price target on the stock in a research report on Tuesday, April 16th. Wells Fargo & Co increased their price target on Shopify from $195.00 to $275.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 1st. Piper Jaffray Companies increased their price target on Shopify from $149.00 to $216.00 and gave the stock a “neutral” rating in a research report on Tuesday, April 30th. Credit Suisse Group increased their price target on Shopify from $190.00 to $275.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 1st. Finally, National Bank Financial upped their price objective on Shopify from $250.00 to $270.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 1st. One investment analyst has rated the stock with a sell rating, six have given a hold rating and fourteen have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $237.71.

SHOP opened at $264.16 on Tuesday. Shopify has a 12-month low of $117.64 and a 12-month high of $266.72. The company has a debt-to-equity ratio of 0.05, a quick ratio of 12.57 and a current ratio of 12.56. The firm has a market cap of $27.68 billion, a PE ratio of -433.05 and a beta of 1.57.

Shopify (NYSE:SHOP) (TSE:SHOP) last posted its quarterly earnings results on Tuesday, April 30th. The software maker reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.44. Shopify had a negative return on equity of 3.74% and a negative net margin of 6.17%. The business had revenue of $320.50 million for the quarter, compared to the consensus estimate of $310.11 million. During the same quarter in the prior year, the company earned $0.04 EPS. The business’s revenue was up 49.6% compared to the same quarter last year. On average, equities analysts expect that Shopify will post -1 EPS for the current year.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Financial Advocates Investment Management raised its stake in Shopify by 4.2% in the fourth quarter. Financial Advocates Investment Management now owns 3,873 shares of the software maker’s stock valued at $536,000 after buying an additional 155 shares during the last quarter. Bollard Group LLC raised its stake in Shopify by 1,935.0% in the fourth quarter. Bollard Group LLC now owns 20,350 shares of the software maker’s stock valued at $2,817,000 after buying an additional 19,350 shares during the last quarter. Henry James International Management Inc. raised its stake in Shopify by 140.7% in the first quarter. Henry James International Management Inc. now owns 33,947 shares of the software maker’s stock valued at $7,014,000 after buying an additional 19,846 shares during the last quarter. Brown Advisory Inc. raised its stake in Shopify by 6.9% in the fourth quarter. Brown Advisory Inc. now owns 4,927 shares of the software maker’s stock valued at $682,000 after buying an additional 318 shares during the last quarter. Finally, Barton Investment Management raised its stake in Shopify by 5.6% in the fourth quarter. Barton Investment Management now owns 304,743 shares of the software maker’s stock valued at $42,192,000 after buying an additional 16,208 shares during the last quarter. Hedge funds and other institutional investors own 67.14% of the company’s stock.

About Shopify

Shopify Inc provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing.

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Analyst Recommendations for Shopify (NYSE:SHOP)

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