Shares of online retailer Shopify (SHOP) - Get Shopify, Inc. Class A Report  were slipping in trading after analysts at Wedbush downgraded the stock to neutral from outperform due to issues with the stock's valuation. 

Despite the downgrade, Webush increased its price target on the stock to $305 from $270. The price target is lower than the stock's closing price Monday of $311.83.

Shopify fell 0.75% to $309.49 in trading. 

"While we continue to like Shopify's positioning, vision, and competitive moat as it builds a strong retail operating system for merchants, we downgrade to NEUTRAL, as we believe shares appropriately reflect the opportunity ahead," wrote analyst Vgal Arounian.

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The firm noted that while the company's stock has seen a bump from recently announced products, the benefits from those initiatives will not be felt for some time.

"We take a step back on shares to digest the 125% YTD increase (vs 21% for the Nasdaq), premium valuation, and new product announcements. Additionally, while we view the announcements at Shopify Unite last week as further improving and differentiating the platform, the most impactful announcement, Shopify Fulfillment Network (SFN) isn't expected to generate profits until 2023," Arounian wrote. 

Shopify is a holding in Jim Cramer's Action Alerts PLUS charitable trust