Shopify Looks Poised to Beat Revenue Forecasts: Analyst

Upside to Shopify's stock may already be priced in, however, according to a Barclays analyst.
By Annie Gaus ,

Shopify is about to deliver another strong quarter, according to a Barclays analyst. 

Shares of Shopify (SHOP) - Get Report , which sells turn-key e-commerce solutions for small and medium-sized merchants, have surged 132% since the beginning of this year. The company reports earnings on Thursday before the market opens.

In a note on Tuesday, Barclays analyst Deepak Mathivanan pointed out that Shopify has exceeded its revenue outlook by an average of 5% over the last four quarters, and believes that "similar outperformance in achievable in 2Q."

Shopify is likely to raise its full-year outlook, with some of the growth attributed to localization efforts launched in international markets, he added, forecasting quarterly revenues of $349 million (+42% year-over-year) and gross profit of $197 million (+43%).

However, those upward revisions to its outlook may already be priced in to the stock, according to Barclays. 

"Although we expect 2Q to be strong overall, we think SHOP's current valuation...is already pricing in meaningful upside revisions to estimates over the next several quarters," Mathivanan wrote, affirming an Equal Weight rating on the stock with a price target of $310 per share.

Shares of Shopify were trading down 1.1% to $316.84 mid-day Tuesday.

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