Shopify Slump Seen as Entry Point For Traders Ahead of Earnings

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Morgan Stanley,BNP Paribas SA,Shopify

(Bloomberg) -- A recent slump in Shopify Inc.’s share price has set up a compelling entry point for investors ahead of Wednesday’s highly-anticipated...

-- A recent slump in Shopify Inc.’s share price has set up a compelling entry point for investors ahead of Wednesday’s highly-anticipated earnings release, according to three new Wall Street bulls.Down 15% from a February peak, the shares currently have the most buy ratings since 2022. Analysts at BNP Paribas SA, Citigroup SA and Morgan Stanley upgraded their ratings to buy-equivalent in the past month.

“We are more confident Shopify can surprise to the upside,” Citi analysts led by Tyler Radke wrote in a recent note upgrading the stock to buy from neutral and lifting the price target.Separately, BNP Paribas analysts led by Stefan Slowinski also upgraded Shopify to outperform last week, adding that they see the firm returning to high-twenties revenue growth in 2024, leaving it “looking undervalued.

“Despite questions around the durability of Shopify’s operating margin expansion following Q4 results, we believe investor expectations have over-corrected,” analyst led by Keith Weiss wrote in a recent note upgrading the stock to overweight.Sony Group Corp.’s shares slid the most in almost three months after its proposal to buy Paramount Global raised financing concerns. The Japanese electronics giant and Apollo Global Management Inc.

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