JMP Securities has become the latest analyst to downgrade Shopify’s (SHOP) stock after the Canadian e-commerce company’s share price more than doubled over the past year.
Shopify’s shares have gained 112% in 2023, pushing its valuation sky high and raising concerns among analysts about the ability of the stock to continue running higher.
JMP Securities has downgraded Shopify to “market perform” from “outperform” and removed its price target on the stock.
More than half (56%) of analysts now rate the stock a “hold,” while 40% continue to rate it a “buy,” and 4% have a “sell” rating on the shares.
In late November, analysts at Piper Sandler (PIPR) also downgraded Shopify’s stock, citing an “untenable valuation.”
Several analysts also continue to raise concerns that growth in Ottawa-based Shopify’s e-commerce business will continue to slow from the boom seen during the Covid-19 pandemic.
While Shopify’s stock has recovered this year from a sharp downturn during the 2022 bear market, its share price today is 52% lower than the peak it reached in November 2021.
