Investing.com -- Benchmark upgraded Shopify Inc (NYSE:SHOP) to "Buy" from "Hold" with a $150 price target on stronger momentum in enterprise adoption and Shopify Plus.
The firm expects Shopify to report upside to gross merchandise volume in its earnings release, with an increasing share driven by Shopify Audiences—an exclusive tool for Plus merchants using Shopify Payments in the U.S. and Canada.
"Returns generated here from prospective audience lists –including ad targeting, customer acquisition cost savings, sales lift– more than compensate for the $2300/ mo. Plus upgrade, and much higher for larger merchants," Benchmark analysts wrote in a note.
Shopify’s pay-per-sale ad product, Shopify Campaigns, has also seen strong adoption among smaller merchants since its broader U.S. and Canada launch in December, according to Benchmark.
Looking ahead, the firm anticipates further optimization of Shopify Audiences and Campaigns in 2025, along with new marketing features such as generative AI tools, bidding, and retail media ad extensions.
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