DA Davidson lowered its price target for Shopify shares to $180 from $200 while maintaining a Buy rating. The new target is based on 60 times the firm’s estimate of Shopify’s 2027 free cash flow.
Shopify shares fell 5.8% over the past week to $148.35, according to the report. The company posted year-over-year revenue growth of 32% at constant currency and gross profit growth of 28%. Both figures were in line with consensus estimates but below the level investors had expected to justify the stock’s premium valuation. Shopify trades at a reported price-to-earnings ratio of 99.
DA Davidson described Shopify’s fourth-quarter outlook as constructive. Management forecast revenue growth in the low 30% range, compared with consensus estimates of about 30%.
The firm said it expects benefits from agentic commerce to take time to emerge, while continuing to view Shopify as a long-term winner that provides infrastructure for merchants.
Shopify’s third-quarter 2026 revenue rose 32% year over year to $3.74 billion, in line with revenue forecasts. Earnings per share were $0.49, above the analyst estimate of $0.47. Investors appeared to focus on the company’s outlook and spending plans following the results.
Sources: Investing.com News.