Shopify (SHOP) Shares Rise After Jefferies Upgrades Stock to Buy
Shopify (NASDAQ: SHOP) shares rose about 2.4% to $125.48 in Monday’s premarket trading after Jefferies upgraded the stock from Hold to Buy. The firm also raised its price target from $140 to $160, implying about 31% upside from the current price.
Jefferies analyst Samad Samana said the upgrade was based on data showing Shopify’s gross merchandise volume (GMV) grew faster than Wall Street expected in the second quarter. Shopify is scheduled to report its Q2 2026 earnings on August 5, 2026, and Jefferies believes the company is likely to beat analysts’ estimates.
The firm also highlighted Shopify’s revamped partner program as a key growth driver. The new strategy focuses on attracting larger enterprise customers while improving customer retention. Jefferies expects the changes to support revenue growth and reduce sales and marketing costs over time, helping improve profit margins.
Jefferies also believes Shopify is well positioned to benefit from the growth of AI-powered commerce. The firm sees Shopify as an important platform that enables merchants to use AI tools to improve the online shopping experience.
Another potential catalyst is future subscription price increases. Shopify last raised prices for its standard plans in 2023 and increased Shopify Plus pricing in 2024. Since then, the company has launched several new features, including its AI assistant Sidekick, while keeping prices unchanged. Jefferies believes this creates room for another price increase in the future.
Jefferies is not the only firm with a bullish view on Shopify. Last week, Stifel also upgraded the stock from Hold to Buy and raised its price target from $110 to $150. The firm expects Shopify to gain market share, expand its enterprise business, grow internationally, and increase payment processing revenue.
Stifel also believes Shopify could deliver more than 30% revenue growth in 2026 and views the recent pullback in the stock as a buying opportunity.
Overall, Wall Street remains optimistic about Shopify. Among analysts covering the stock, 23 rate it Buy, while two recommend Hold. The average price target is $158.37, suggesting about 29% upside from current levels.
As of Monday, July 13, Shopify shares were trading at $125.48 in premarket trading.
