William Blair analyst Matthew Pfau upgraded Shopify to Outperform from Market Perform without a price target. With the recent selloff in the software-as-a-service space, Shopify’s valuation has “come down to a more reasonable level,” Pfau tells investors in a research note. The analyst says that although it is hard to call where the near-term bottom is, and the stock is “still not inexpensive by any means,” over the long term Shopify should be able to maintain a premium valuation given its “growth prospects, great execution, and dominance in the e-commerce software space.” Shopify has “plenty of growth levers remaining,” including enterprise, international, and take-rate, contends Pfau. He believes the company can increase its revenue more than twice the e-commerce growth rate over the next several years, resulting in 30%-plus growth in a “bull-case scenario.”
previous post
next post