Jefferies has upgraded Shopify (SHOP) to a Buy rating, raising its price target from $140 to $160. This adjustment suggests a potential upside of approximately 31% from SHOP's current trading levels.
Analyst Samad Samana indicated that third-party data shows Shopify's gross merchandise volume (GMV) growth is outperforming Wall Street's expectations ahead of its second-quarter earnings report, scheduled for August 5, 2026. This positive outlook has contributed to Jefferies' decision to upgrade the stock, as the firm anticipates better-than-consensus results.
Growth Drivers and Future Revenue Potential
Jefferies also highlighted Shopify’s recent updates to its partner program as essential for driving near-term growth. These changes aim to encourage partners to attract larger merchants while also enhancing customer success initiatives. The firm believes this strategic shift could improve Shopify’s margins over time by lowering sales and marketing expenses.
Furthermore, Jefferies sees Shopify positioned to become a foundational element in agentic commerce, where AI agents streamline parts of the shopping experience for consumers. Samana refers to Shopify as the “agent enablement” toolkit that could redefine online retail operations.
Prospects for Pricing Strategy
Another potential avenue for revenue growth includes the possibility of a price increase for Shopify's subscription plans. The company last adjusted prices on non-Plus plans in 2023 and on Plus plans in 2024. Given the introduction of new features, including the AI assistant Sidekick, Jefferies believes that Shopify could justify a price increase, further enhancing its revenue potential heading into 2027.
In addition to Jefferies, Stifel also upgraded Shopify to a Buy recommendation last week, setting a price target of $150. Analyst J. Parker Lane cited anticipated revenue growth exceeding 30% in 2026, as well as market share and payment growth as key drivers.
The general consensus on Wall Street remains highly positive, with 23 Buy ratings and only two Holds currently, indicating a strong belief in Shopify's potential moving forward.
This material is for informational purposes only and should not be considered financial advice.
