Shopify Shares Surge on Strong International Growth, Analyst Target Boosts

Shopify's stock has surged significantly, rising over 5% following multiple price target upgrades from analysts impressed by the company's international expansion and AI integration. TD Cowen raised its price target to $156, citing exceptional growth in Europe where gross merchandise volume increased 42%, and highlighted Shopify's strategic partnership with OpenAI to enhance retailer-consumer interactions via AI tools. Rothschild Redburn also increased its price target to $200, emphasizing that Shopify's AI revenue integration is capital-efficient and boosting earnings estimates. Despite strong growth and a near doubling of shares over the past year, analysts caution that macroeconomic risks such as inflation and slowing consumer demand persist, and current valuations imply expectations of sustained high revenue growth and cash flow margins. Shopify's platform-agnostic AI approach and international market penetration are key factors driving optimism, positioning the company well to capitalize on the evolving e-commerce landscape. Overall, analysts maintain a positive outlook but note that the stock's price reflects ambitious future growth assumptions.