Shopify Surpasses Target Price: What’s Next for Investors?
Recently, shares of Shopify Inc (Symbol: SHOP) have traded above the average analyst target price of $118.94, changing hands at $119.18 per share. When a stock reaches an analyst’s target, they have two main options: downgrade the stock or adjust the target price higher. Analysts’ responses may vary based on the business developments impacting the company’s stock performance — if conditions are improving, it may be time to set a new, higher target price.
Analyst Forecasts Reveal Diverse Opinions
There are 41 different analyst targets contributing to the average price for Shopify Inc, illustrating a wide range of perspectives. While the average is $118.94, some analysts maintain lower targets, such as $90.94, while others predict prices as high as $140.00. The standard deviation among these targets is $13.885, indicating a notable level of uncertainty among analysts.
Assessing Potential Directions for Shopify
The average price target reflects a “wisdom of crowds” approach, combining insights from multiple analysts rather than relying on a single expert opinion. With SHOP surpassing the average target price, this situation encourages investors to reevaluate their positions. Investors must consider whether $118.94 is merely a milestone on the path to higher prices or if the current valuation is unwarranted, prompting the need to reconsider their investments.
| Recent SHOP Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 26 | 25 | 24 | 25 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 17 | 17 | 18 | 18 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 0 |
| Average rating: | 1.87 | 1.89 | 1.93 | 1.84 |
The average rating in the above table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. Data for this analysis was sourced from Zacks Investment Research via Quandl.com.
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Also see:
• Historical PE Ratio
• HMTV Insider Buying
• Carmax DMA
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
