Shopify’s (SHOP) advantage over larger competitors such as Amazon is that it can rely on innovative retailers to expand its business.
Analyst Samad Samana raised his Shopify rating for Buy from Hold and raised his target to $ 1250 from $ 1150. He admits that he missed the “meteoric rise in shares”, but believes it is not too late to buy, as its “long-term prospects are brighter than ever”.
Samana believes that Shopify can achieve strong growth over the next few years, eventually reaching about $ 10 billion in revenue by 2025 as more people continue to shop online for more products than ever before.
“Although the pandemic is temporary, it has exacerbated structural problems for both online and offline retailers – the challenge of selling through multiple channels, the difficulty of logistics, the need for access to capital are just a few. Shopify solves many of these sore points and we expect more retailers to work with the Shopify platform. “
Technical analysis: The price forms a flag formation, which indicates that the rise will continue. Although it is below 50-MA, the price is currently attractive enough for purchases. We have a return on price over Fibonacci 23.6%.
Alternative scenario: A confirmed break below Fibonacci 38.2% is likely to force buyers to back off and the price to continue with its correction.
Source: Bloomberg Pro Terminal
Chart: Used with permission from Bloomberg Finance L.P.