Why Bank of America is Bullish on Shopify Stock

The security is on track to overcome its slim year-over-year deficit

Jake Scott

Deputy Editor

Jul 16, 2024 at 9:15 AM

SHOP

The shares of Shopify Inc (NYSE:SHOP) are up 5.3% before the bell, after landing an upgrade at Bank of America to "buy" from "neutral" and price-target hike to $82 from $78. The analyst cited the e-commerce firm's revenue growth and robust margin expansion as catalysts for the bull note.

There's room for more covering brokerages to change their tune. Coming into today, 19 of 40 analysts rated SHOP a tepid "hold," leaving the shares open for more upgrades in the weeks ahead.

Over the last nine months, Shopify stock has added 20.5%. This bounce culminated in the security hitting a two-year high of $91.57 on Feb. 12. Beginning in early May, SHOP suffered a bear gap on the charts that was kept in check by the $57 level. Thanks to today's bull note, the equity is on track to open above the $67 mark and move above its year-over-year breakeven level.

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