Shopify Enjoys Growth On Heels Of Black Friday: Here's What Analysts Have To Say

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Shopify Inc (NYSE: SHOP) shares climbed in early trading on Monday, after reporting blockbuster Black Friday results.

  • RBC Capital Markets analyst Paul Treiber maintained an Outperform rating and price target of $80.
  • Oppenheimer analyst Ken Wong reiterated an Outperform rating and price target of $80.
  • Needham analyst Anna Andreeva reaffirmed a Hold rating on the stock.
RBC Capital Markets: Shopify's Black Friday sales grew 22% year-on-year to a record high of $4.1 billion, Treiber said in a note. "Peak sales per minute were $4.2MM, an increase of 20% Y/Y, with an average cart price of $110.71, up 8%, he added.

"We believe Shopify's faster growth than the broader market stems from new merchant wins, the faster growth of e-commerce relative to retail sales, and market share gains at Shopify's merchants," the analyst further stated.

Oppenheimer: Shopify's Black Friday sales grew at a pace faster than the consensus estimates for the fourth quarter of around 17% year-on-year GMV (gross merchandise value) growth, Wong said. The pace was also "well ahead of '22 levels, he added.

"Our proprietary analysis of Shopify's Live Sales suggests that through Sunday, SHOP remains on course to deliver 20%+ growth, with only Monday remaining (~30% of BFCM sales),"

Needham: Shopify recorded 22% GMV growth on Black Friday, which "historically contributes only 5-10% of 4Q sales for a retailer," Andreeva said. The company's results implies "mid-teens GMV guide for 4Q23," she added.

"Clothing, personal care, and jewelry were the best performing categories, while global AOV in constant currency was up 5%; POS accelerated (+33% vs. +26% as of 3Q23) as SHOP continues to be successful in converting offline retailers," the analyst further wrote.

SHOP Price Action: Shares of Shopify had risen by 4.36% to $73.42 at the time of publication Monday.