Shopify stock rose Monday after Credit Suisse analyst Brad Zelnick said he is getting more bullish over its shares.
Shopify stock soared 187% last year. Investors are increasingly optimistic about its e-commerce infrastructure platform, services, and tools. The company uses cloud computing to offer better reliability, lower upfront costs, and scalability to its merchant customers, generating revenue through a combination of monthly subscription and transaction fees.
On Monday, Zelnick reaffirmed his Outperform rating for Shopify shares, predicting strong growth from the company’s offerings this year. He also raised his price target to $450 from $370 for the stock.
“As we enter 2020, we take this opportunity to refresh our valuation of Shopify,” he wrote. “We anticipate Shopify will continue to execute against its secular growth opportunities in 2020.”
Shopify stock was up 3.4% to $443.67 on Monday.
Last June, Shopify took a big step toward becoming a viable alternative to Amazon.com (AMZN). It unveiled the Shopify Fulfillment Network, which gives merchants cheaper shipping, warehousing, and picking/packaging services.
The analyst said the next two catalysts for the stock include its fourth-quarter earnings report and any updates on the progress of its Shopify Fulfillment Network.
Other Wall Street analysts are mixed on Shopify shares. About 48% of them have ratings of Buy or the equivalent on the stock, while 41% have Hold ratings, according to FactSet.
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