Shopify (NYSE:SHOP) stock is on the rise Monday after the e-commerce company’s shares were upgraded by MoffettNathanson analyst Michael Morton.
That upgrade has the analyst increasing the firm’s rating for SHOP stock from “market perform” to “outperform.” For the record, the analyst consensus rating for SHOP shares is a “hold” based on 38 opinions.
In addition to that upgrade, the MoffettNathanson analyst also set a price target of $76 per share for SHOP stock. That represents a potential 15.9% upside compared to the stock’s prior closing price. It’s also well above the analyst consensus price prediction of $59.42 per share.
Why the Bullish Stance on SHOP Stock?
Here’s what Morton had to say about the Shopify upgrade in a note to clients obtained by CNBC:
“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.”
According to the analyst, this expectation comes from “an inflection in the business” that he believes the consensus doesn’t currently take into account. The analyst specifically points to Shopify Plus and its offerings for larger merchants as one of the potential catalysts for SHOP stock.
Trading on Monday are more than 2.3 million shares of SHOP stock. That’s still below its daily average trading volume of about 15.2 million shares. Even so, SHOP is up almost 1% this morning. Year-to-date (YTD), SHOP is up 85.8%!
Investors seeking out even more of the most recent stock market news will want to keep reading!
We have all of the hottest stock market news that traders need to know about on Monday! A few examples include why shares of Tesla (NASDAQ:TSLA), AMC Entertainment (NYSE:AMC) and AppHarvest (NASDAQ:APPH) stock are in the news today. All of that info is ready to go at the links below!
More Stock Market News For Monday
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
