Shares of Shopify Inc. SHOP, +5.81% are up 4% in Wednesday morning trading after Stifel analyst Scott Devitt initiated coverage of the e-commerce company with a buy rating and $1,200 price target. “We believe the company is positioned for sustainable growth supported by international expansion, growth in enterprise merchants, and the development of additional products and services supporting increased monetization,” he wrote in his note to clients. Devitt sees Shopify as being in the best position to capitalize on the growing digitalization of business, a trend accelerated by the pandemic. “As the global number of retail businesses increases, Shopify creates additional solutions, and Shopify further monetizes its current solutions, the total addressable market will continue to expand,” Devitt said. The current total addressable market for small- and medium-sized businesses is about $153 billion, which reflects the number of global retail businesses calculated by Shopify’s average revenue per merchant. Shares of Shopify have declined 2.3% over the past three months but they’ve gained 165% over a 12-month span. The S&P 500 SPX, +0.60% is up 5.8% over 12 months.
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