.August 6, 2024 12:28 PM

Truist Securities lowered their price target for Shopify (NYSE: SHOP) to $55 from $65, maintaining a Hold rating before the company’s Q2 earnings release. Analysts predict a more restrained gross merchandise volume (GMV) in Q2 2024, estimating $65.7 billion, slightly above their $64.9 billion estimate but close to or below the Street’s $65.8 billion estimate. Revenue from merchant solutions, non-GAAP operating profit, and cash flow may see modest gains. The risk/reward profile is attractive at 6 times estimated 2025 sales and 41 times estimated 2025 free cash flow, but concerns about valuation and macroeconomic factors led to the Hold rating and price target reduction.