RBC Capital has significantly increased its price target for e-commerce giant Shopify (NASDAQ:SHOP) to $200 from $170, while reaffirming its 'Outperform' rating. This upward revision reflects strong growth momentum and market share gains observed by the firm through the third quarter of 2025, supported by various third-party data points.
Key Takeaways
- RBC Capital raises Shopify's price target to $200 from $170.
- The firm maintains an 'Outperform' rating on Shopify stock.
- The increase is driven by strong growth momentum and market share gains.
- Shopify's stock has seen a 91.8% return over the past year.
Growth Momentum and Market Position
RBC Capital's decision to raise the price target is underpinned by data suggesting Shopify's continued strong growth and expansion in market share during the third quarter of 2025. The company's impressive 91.8% stock return over the last year and 28.98% revenue growth in the preceding twelve months further bolster this outlook. The firm anticipates that Shopify's upcoming third-quarter results and fourth-quarter guidance, expected on November 4, 2025, are likely to surpass consensus expectations.
AI Innovations and Analyst Sentiment
Market enthusiasm for Shopify's advancements in artificial intelligence is also cited as a key factor supporting the increased valuation. Recent developments, such as Shopify's integration with OpenAI's ChatGPT, have garnered positive attention from analysts. Benchmark raised its price target to $195, and Rothschild Redburn increased theirs to $200, both highlighting the potential of AI-driven commerce and new sales channels created through partnerships with OpenAI. Citizens JMP reiterated a 'Market Outperform' rating, underscoring confidence in Shopify's AI capabilities. Furthermore, OpenAI's new 'Instant Checkout' feature in ChatGPT is now available to over one million Shopify merchants, enabling direct sales through the platform.
Company Overview and Recent Departures
Shopify is a Canada-based global commerce company that provides essential internet infrastructure for businesses of all sizes. Its platform enables merchants to manage their operations across various sales channels, including online, physical stores, and social media. In recent news, Shopify's Chief Revenue Officer, Bobby Morris, announced his departure after a significant tenure marked by consistent revenue growth and free cash flow increases. During his time, Shopify achieved nine consecutive quarters of over 25% revenue growth and eight consecutive quarters of over 15% free cash flow, with its market capitalization increasing more than fivefold.
Sources
- Shopify price target raised to $200 from $170 at RBC Capital on growth momentum By Investing.com, Investing.com.
- RBC Capital Raises Price Target for Shopify (SHOP) to $200, GuruFocus.
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Shopify Brief: Keeps Outperform, Price Target Raised To US$200 From $170 at RBC As "Data Points Suggest
Shopify's Strong Growth Momentum and Market Share Gains Continue", MarketScreener. - RBC Raises Price Target on Shopify to $200 From $170, Keeps Outperform Rating, MarketScreener.
- RBC Capital Markets Lifts Shopify's Price Target to US$200 from US$170, MarketScreener.
