CIBC Raises Shopify (SHOP) Price Target to $200, Keeps Outperformer Rating

Core Insights - Shopify Inc. is recognized as one of the 15 Best Long Term Stocks to Buy according to Reddit [1] - CIBC has raised its price target for Shopify to $200 from $185, maintaining an Outperform rating, citing conservative consensus estimates [2] - Shopify's Q3 2025 revenue reached $2.8 billion, a 31.5% increase year-over-year, exceeding analyst estimates by $80 million [3] Financial Performance - In Q3 2025, Shopify's free cash flow increased by 20% year-over-year, achieving an 18% margin [3] - Operating income rose by 21%, with a margin of 12% [3] - Gross margin slightly decreased due to a higher proportion of lower-margin merchant solutions revenue [3] Future Outlook - For Q4 2025, Shopify anticipates revenue growth in the mid-to-high 20% range year-over-year [4] - Projected operating expenses are expected to be 30–31% of revenue, with free cash flow margin slightly higher than in Q3 [4] Market Position - Shopify holds approximately 30% of the US e-commerce software market, compared to 23% for its main competitor, Wix [5] - The platform accounts for over 12% of total US e-commerce, including sales from major retailers like Amazon [5]