RBC raises Shopify price target to $200 on sustained growth outlook

RBC Capital Markets has increased its price target for Shopify to $200, up from $180, highlighting the company's robust growth trajectory and potential to outperform market expectations. This upward adjustment underscores RBC's confidence in Shopify's ability to maintain growth above 30%, driven by enduring merchant sales, pricing adjustments, and expanded AI-driven commerce capabilities.

Shopify has been actively positioning its platform at the core of AI-powered shopping experiences, recently integrating more AI agents into its product catalogue to enable seamless product discovery and purchases through connected shop assistants. This strategic move aligns with Shopify's collaborations with platforms such as Meta's Muse and its Shop Pay checkout solution.

RBC attributes a 110 basis points boost to its annualized growth rate to the recent price increases, further bolstering the outlook. The investment bank retains an "Outperform" rating for Shopify, emphasizing the potential for the stock's valuation to appreciate as investors appreciate the company's consistent growth and AI-driven prospects.

Shopify's third-quarter results are anticipated on November 3, with the company previously recording a 34% revenue growth in the second quarter and projecting low-thirty percentage growth for the upcoming quarter.