Shopify PT Raised to $175 at Evercore ISI
Evercore ISI raises Shopify price target to $175
SHOP PT Raised to $175 at Evercore ISI Overall, Q2 results strongly amplified the SHOP Long Thesis.
We view SHOP as one of the few Large Caps in our coverage with a still premium growth outlook, no major capex cycle, and very likely an AI beneficiary on both the merchant-productivity (Sidekick) and demand-generation (Shop App / agentic surfaces) sides.
Valuation is clearly demanding here at close to 40X EV/EBITDA, but these fundamentals (30%+ top and bottom-line growth) are rare-air, and the company's execution track record and competitive positioning against very large TAMs is very impressive.
We'll call this a Modest Buy: Our FY26 & FY27 Revenue estimates modestly increase by +2%/+4%, our EBITDA estimates increase by +7%/8%, respectively.
Our FCF also increases by 14%/13%, respectively reflecting guidance commentary.
We are increasing our PT at $175 off 45X 2028E EBITDA of $4.75B and 50X our 2028E FCF of $4.66B.