Truist Raises Shopify Target to $150 as Q4 Revenue Climbs 31%
Truist upgraded Shopify to Buy from Hold, boosting its price target to $150 from $110, citing accelerating growth and discounted software valuations after a recent drawdown. Shopify’s Q4 revenue reached $3.67B (up 31% YoY) with a 19% free cash flow margin, while Jefferies cut its target to $125.
1. Truist Upgrade and Price Target Increase
On February 17, Truist upgraded Shopify to a Buy rating from Hold and lifted its 12-month price target to $150 from $110, citing accelerating software growth and an attractive entry valuation following sector drawdowns.
2. Jefferies’ Rating and Target Adjustment
On February 16, Jefferies maintained a Hold rating on Shopify while reducing its price target from $160 to $125, reflecting updated revenue forecasts and compressed multiples across the software industry.
3. Q4 Financial Results and Strategic Investments
In Q4, Shopify posted $3.67 billion revenue, a 31% year-on-year increase, and achieved a 19% free cash flow margin, bringing full-year revenue growth to 30% and a 17% free cash flow margin; the company highlighted investments in Catalog, Sidekick, Universal Commerce Protocol and its broader AI-enabled commerce platform.