Has Shopify (SHOP) Priced in Future Growth, According to Analysts?

Shopify Inc. (NASDAQ:SHOP) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. At a reported value of roughly $716 million, SHOP accounted for close to 4.3% of ARK Investment Management’s 13F portfolio at the end of September.

On November 24, analysts at BNP Paribas Exane initiated coverage of Shopify Inc. (NASDAQ:SHOP) with a Neutral rating and a $160 price target, according to TheFly. The analysts see the company as a “clear leader in global e-commerce” and “well positioned to continue gaining share for years to come.”

Shopify Inc. (NASDAQ:SHOP) has rallied 49% year to date, and with such a strong performance, BNP Paribas Exane believes the stock’s valuation is fully priced for the robust long-term outlook. They therefore chose a neutral stance.

However, the analysts said they may “turn more constructive on shares in the event of a further pullback” in share prices.

Shopify Inc. (NASDAQ:SHOP)’s stock had touched as high as $182 during late October, and clocked nearly 70% in year-to-date returns, before correcting around 12% in November. As of November 27, the stock is a moderate Buy, with a consensus 1-year median price target of $165, implying 4% upside.

Shopify Inc. (NASDAQ:SHOP) provides a cloud-based commerce platform that enables merchants to build, operate, and scale online and offline stores. It offers tools for payments, marketing, fulfilment, and omnichannel retail.

While we acknowledge the risk and potential of SHOP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHOP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.