A leading analyst at Scotia Capital (BNS) has named Shopify (SHOP) stock a top pick heading into Black Friday this weekend.
Kevin Krishnaratne says in a note to investors that the e-commerce company will benefit from the holiday sales event, noting that the stock typically rises in the three weeks surrounding Black Friday each year.
“We think the stock can continue to move higher to close out the year,” he wrote.
The bullish call comes despite Shopify stock rising sharply over the past month following better-than-expected third-quarter financial results.
Since the end of October, Shopify’s stock has increased 40%. However, Krishnaratne sees more room to run for Shopify stock.
In his report, he highlights that between 2016 and 2023, shares of Shopify averaged a 7.5% increase in the 15-trading-day window around Black Friday.
This year, Scotia Capital expects Black Friday sales of $4.9 billion U.S. for Shopify, which would represent an 18% year-over-year increase.
Scotia Capital maintains a Buy rating on Shopify’s stock with a $115 U.S. price target.
So far this year, Shopify’s share price has risen 52% and is currently trading at $112.54 U.S. per share in New York.
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