Shopify Inc.’s shares just won an upgrade, even as an analyst acknowledged their “elevated” valuation. Michael Morton of SVB MoffettNathanson boosted his rating on the e-commerce name to outperform from market perform Monday, writing that he expects “an inflection in the business that consensus is currently missing.”
Morton said he is upbeat about the company’s opportunities with its enterprise customers, and he said that Wall Street may have been too “distracted” by Shopify’s
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recent misadventures in fulfillment to realize that the company’s Shopify Plus service has become a more compelling offering for enterprise players. See also: Roku stock rockets after company announces Shopify partnership for shoppable TV ads However, Shopify’s product improvements “were not unnoticed by the enterprise market, or the system integrators,” Morton wrote, and adding the company is “in the early stages of an enterprise inflection with preliminary data pointing to increasing traction.” He said he is upbeat about various developments, including that web traffic to the Shopify Plus login page is outstripping that to incumbent enterprise offerings. Additionally, large system integrators have “embraced” Shopify, he said, while independent Shopify agencies are seeing growing interest in the product from bigger enterprise customers. “Individually, these data points are not conclusive, but together they bridge the gap to generate confidence on Shopify’s growing enterprise success,” according to Morris, who lifted his price target on the stock to $76 from $35. Don’t miss: Amazon needs a ‘significant amount of self-help’ to boost its stock, says analyst Plus, Shopify has made two compelling additions to its leadership ranks with former Salesforce Inc.
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executive Bret Taylor joining the …
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