Shopify NASDAQ:SHOP stock rose about 3% on Monday after Jefferies upgraded the e-commerce software company to Buy, citing growing confidence in its AI strategy and improving growth outlook.
Jefferies assigned Shopify a $140 price target, saying third-party data indicates the company could deliver second-quarter results above Wall Street expectations. The firm also expects recent partner program changes to support near-term growth while reducing long-term sales and marketing costs.
The brokerage said Shopify's expanding AI offerings, including its Sidekick assistant, position the company to become a key infrastructure platform for AI-powered commerce. Jefferies also sees potential for another subscription price increase in 2027 after Shopify introduced several new features over the past two years.
Shopify last increased prices for most standard plans in 2023 and for Plus subscriptions in 2024. Jefferies said stronger AI capabilities, improving operating efficiency, and future pricing flexibility could provide additional support for the company's long-term growth.