Shopify Inc. (NASDAQ:SHOP) shares are trading higher Monday. Piper Sandler reiterated its Overweight rating and $180 price target on the stock, citing increased demand driven by agentic shopping tools.
Piper Sees Agentic Shopping as a Share-Gain Opportunity for Shopify
According to Investing.com, Piper Sandler hosted investor calls with a Shopify agency owner and a member of the company’s Partner Network to discuss AI and agentic shopping. The firm said demand for Shopify migrations has increased materially as agentic tools gain popularity. Agentic transactions are being adopted at roughly twice the rate of large language models and are generating roughly twice the average order values. An expert the firm consulted estimates that less than 2% of gross merchandise volume is driven by agents, compared with 3% to 5% for large language model traffic.
Piper Sandler views agentic technology as a market share gain opportunity for Shopify. Analyst James Callahan said that, setting aside incremental gross merchandise volume, business momentum has strengthened. Piper has projected 32% year-over-year revenue growth by 2027, above the market consensus of 26%.
Earlier Analyst Activity
Earlier analyst activity includes Bernstein initiating coverage on September 10 with an Outperform rating and a $160 price target. Mizuho reiterated Outperform with a $180 target. Phillip Securities downgraded the stock to Accumulate from Buy while raising its price target to $170.
Shopify Shares Rush Higher
SHOP Price Action: At the time of publication, Shopify shares are trading 4.08% higher at $157.57, according to data from Benzinga Pro.
Image via Shutterstock
Login to comment