Shopify stock maintains Market Outperform rating at Citizens on Black Friday growth

Investing.com - Citizens maintained its Market Outperform rating and $185.00 price target on Shopify (NASDAQ:SHOP) following strong Black Friday performance. This target represents approximately 18% upside from the current price of $156.83, though InvestingPro data indicates the stock is currently trading above its Fair Value.

The e-commerce platform reported global sales growth of 27% year-over-year during the recent shopping period, or 24% when excluding foreign exchange impacts, with acceleration occurring throughout the five-day period.

Black Friday specifically saw sales increase by 25% compared to the previous year, demonstrating Shopify’s continued market share gains in online retail.

The Cyber 5 shopping days (Thanksgiving through Cyber Monday) historically represent a significant portion of Shopify’s fourth-quarter gross merchandise volume, accounting for 12.2% of the company’s 4Q24 GMV and generating approximately 2.25 times more daily sales than other days in the period.

This online shopping growth comes as Sensormatic Solutions reported a 2% year-over-year decline in physical store traffic on Black Friday, suggesting a continued consumer shift toward e-commerce in 2025.

In other recent news, Shopify reported record sales of $14.6 billion over the Black Friday-Cyber Monday weekend, marking a 27% increase from the previous year. The company highlighted a 24% sales growth on a constant currency basis, with peak transactions reaching $5.1 million per minute. Raymond James maintained its Market Perform rating for Shopify, noting the company’s 25% year-over-year growth in Black Friday sales, which outpaced competitors such as Salesforce and Adobe. However, Oppenheimer pointed out that Shopify’s Black Friday sales growth of 25% fell short of the anticipated 28% year-over-year growth in gross merchandise volume for the fourth quarter.

BNP Paribas Exane initiated coverage on Shopify with a Neutral rating and set a price target of $160, recognizing the company’s leadership in global e-commerce. Benchmark reiterated its Buy rating and $195 price target for Shopify, highlighting the company’s accelerating gross merchandise volume, which grew 32% year-over-year for the second consecutive quarter. These developments underscore Shopify’s strong performance during a critical holiday shopping period, despite varying analyst perspectives on its growth trajectory.

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