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Shopify receives upgrade, price target lift from Goldman Sachs

Shopify (SHOP) has received bullish reviews from Goldman Sachs, as the investment bank upgraded its rating on the e-commerce platform's stock to Buy from Neutral. In addition to the rating change, Goldman Sachs also raised its price target on the stock to $74 from $67.

While Shopify's stock has faced pressure recently, Goldman Sachs views this as a opportune moment for investors to buy the dip.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith

Video Transcript

Time for some calls of the day.

Goldman Sachs upgrading Shopify today to buy it from neutral and raising its price target to $74 up from 67.

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So you know this stock is interesting.

It's been under some pressure.

It's down more than 20% so far this year, Goldman says, though OK, that is an opportunity because they say, yes, there's an investment cycle weighing on margins, more mixed consumer spending.

We know that's been weighing on the stock, but they tell their clients you stick with this one.

Because Shopify has significant technology mode in E commerce software share gain across E commerce cycles, they point out, Bottom line, that's gonna drive.

Goldman says.

Durable growth at scale.

Goldman does point out some risk, but bottom line, they say this was a buy to their clients.

Yeah, and the stock is down like 25% year to date.

So they're looking at it and seeing all of that, that is perhaps priced in and not justified, given that, um, and they talk about the the company has been investing in what they call large adjacency.

In other words, you know, sort of bolt on technology, things that are adjacent to their business.

That will be a creative over time.

And that's also one of the reasons that they like the stock.

Yeah, there are some downside risks, they point out.

Listen, they say consumer spending could be worse.

That would that would pressure GMV shares in E commerce could be a impact, they said, by kind of aggressive investment from companies rivals.

That's Amazon, Temu.

But that is not their base case here that they're buyers.