Keep an eye on Shopify (SHOP).
After a brief pullback, the stock is turning higher. All after MoffettNathanson analysts turned bullish based on the e-commerce software provider’s potential to serve large retailers, rather than just the smaller sellers, as noted by Barron’s.
The firm raised its rating to outperform from market perform, with a price target of $76, which is more than double its initial target of $35 a share.
“Let’s start by addressing the elephant in the room, Shopify trades at an elevated multiple,” they wrote. “Upgrading … implies expectations for an inflection in the business that consensus is currently missing. This is our intention as we expect Shopify to gain increasing traction with enterprise customers going forward. Better yet, early signs suggest the transition to the enterprise is already underway.”
They also believe the company is “in the early stages” of a pick-up in its enterprise business.
SHOP last traded at $65.96 – up about 40 cents on the day.