Benchmark Upgrades Shopify Rating to 'Buy' Amidst Strong Growth Prospects

Shopify Inc. (NYSE: SHOP), the leading e-commerce platform, has received a boost from Benchmark analyst Mark Zgutowicz, who upgraded the company's rating from 'Hold' to 'Buy.' The analyst expects "comfortable upside" to reported and guided gross merchandise value (GMV) and monthly recurring revenue (MRR) in the upcoming quarter, driven by enterprise and Plus merchants. This optimism is supported by the upgrade momentum for Shopify Audiences, a feature available only to Plus merchants using Shopify Payments in the U.S. and Canada.



The firm anticipates further optimization of Shopify Audiences and Campaigns penetration across more merchants and geographies in 2025, which should contribute to the company's growth prospects. This expansion is expected to drive further upside to MRR and GMV, as more merchants adopt and utilize these features.

Shopify's strong growth trajectory is also supported by its recent performance and positive analyst ratings. The company has experienced robust revenue and GMV growth, driven by its enterprise and Plus merchants. Additionally, the average analyst rating for Shopify stock is 'Buy,' with a 12-month stock price forecast of $100.57, indicating a decrease of -17.50% from the latest price.



In conclusion, Benchmark's upgrade of Shopify's rating to 'Buy' reflects the company's strong growth prospects, driven by the upgrade momentum for Shopify Audiences and the expected optimization of this feature. With positive analyst ratings and a strong track record of revenue and GMV growth, Shopify is well-positioned to continue its upward trajectory in the long term.