Shopify (NYSE:SHOP) stock is sliding lower on Wednesday after the e-commerce company was hit with a downgrade from Wedbush analyst Scott Devitt.
Shopify stock was downgraded by the Wedbush analyst from an “outperform” rating to a “neutral” rating. That matches the analyst consensus rating of hold for the shares based on 41 opinions.
To go along with that downgrade, Devitt increased the price target for SHOP stock from $66 per share to $68 per share. That’s a potential 9% drop from its prior closing price. However, it’s still higher than the analyst consensus price prediction of $65.40 per share.
What’s Behind the SHOP Stock Downgrade?
Here’s what the Wedbush analyst had to say about Shopify in a note to clients obtained by Seeking Alpha:
“We see limited room for further multiple expansion, and without incremental catalysts emerging from the investor day, we are lowering our rating to neutral.”
SHOP stock is down 2.6% as of Wednesday morning. That comes alongside some 5.1 million shares of the stock changing hands. This is still below the company’s daily average trading volume of about 11.5 million shares.
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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.
