“Analyst Recommendations for Shopify, MDF Commerce, and Lion Electric: Recent Trends and Market Share”

2023-04-18 17:27:40

Lion Electric president Marc Bédard inaugurated the Mirabel battery plant on Monday. (Photo: The Canadian Press)

What to do with titles from Shopify, MDF Commerce and Lion Electric? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed by the analysts.

Shopify (SHOP, 46,39$US, 64,98$) : des tendances favorables

Data suggests that Shopify will benefit from favorable trends in the first quarter, according to analyst Paul Treiber of RBC Capital Markets.

The latter maintains that the company’s 1,000 largest customers saw their sales climb more strongly than expected during the first three months of the year, while adopting new services, such as point-of-sale software.

“This suggests that customer purchases from merchants using Shopify’s services have been more resilient than expected,” he explains.

In addition, according to figures from BuiltWith, the number of merchants using Shopify’s services increased by 5% between the end of the fourth quarter of 2022 and that of the first quarter of 2023. The increase was 8% over one year and it follows another 4% increase recorded in the fourth quarter.

“It’s arguable that Shopify is gaining market share at the expense of its competitors,” he says.

Thanks to these good figures, the analyst believes that the increase in monthly recurring revenue from merchants using the Shopify platform might exceed his forecast of 2% over three months.

Data from Sensor Tower also shows, according to Paul Treiber, that the number of monthly active users of point-of-sale software grew 31% year on year in the first quarter, which is an acceleration from 12% recorded in the fourth quarter of 2022. “Adoption of this software is the primary driver to drive growth in monthly recurring revenue,” he says.

Additionally, using numbers from SEMRush compiled in conjunction with RBC’s research team, the analyst says traffic to the sites of 1,000 major Shopify customers grew 24% year-over-year in the first quarter, while being down 4% over three months. However, this three-month decline is below the average of 12% over the past three years.

“Shopify’s stock is up 34% year-to-date and puts the company at 8.6x its expected revenue over the next 12 months, 28% below its pre-Covid average of 12x” , he says.

Paul Treiber reiterates his recommendation of “outperformance” on the title of Shopify, as well as his target price over one year of US$65.

MDF Commerce (MDF, $3.45): More job cuts to cut spending

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