Shopify cut at Evercore ISI on ‘few clear catalysts’

Evercore ISI downgraded shares of Shopify (NYSE:) to In Line from Outperform, with a $69 per share price target in a note to clients Tuesday.

Analysts told investors in a note that Shopify’s risk-reward is now less attractive.

“We are downgrading shares of SHOP from Outperform to In-Line as we find the risk-reward outlook on the stock to be less compelling,” they explained.

“Shares have surged almost 100% YTD (tho after declining 75% in’ 22), are now trading at an intrinsically robust 11X EV/Sales (with comps not clearly justifying a further re-rating), and have reached our $69 PT,” analysts added.

The YTD surge in SHOP shares, which Evercore said is driven by a stabilization in fundamentals, material new cost measures, and a strategic step-away from a fully integrated shipping/logistics, is “well warranted,” stated analysts, but they see “few clear catalysts going forward.”