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There's a great quote out there by hedge fund manager Steve Mandel that goes something like this:
"I don't need an analyst to tell me when a 10 PE stock is cheap. I need an analyst to tell me
Shopify: Way Too Cheap For What's Coming
Summary
- Shopify appears expensive based on its present valuation, but the stock appears cheaper when compared with its potential for growth and improved profitability in the coming years.
- The company's high-quality revenue base, low churn, and pricing power contribute to its potential outperformance.
- Shopify's ability to attract and monetize enterprise customers, as well as its strengthening brand, also contribute to its growth potential.
- If SHOP's multiple remains stable, which we think is likely, then the stock could see 50%+ upside through the end of 2025.
- We rate SHOP stock a 'Strong Buy'.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SHOP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.