Shopify Subscription Price Hike Is Another Tailwind For Stock, Analyst Says

  • Citi analyst Tyler Radke views Shopify Inc’s (NYSE: SHOP) price increases for its core monthly subscription plans as incrementally positive for the company’s 2023 outlook.

  • The company announced an average ~33% increase for its Basic, Shopify, and Advanced plans from current monthly rates of $29, $79, and $299, respectively.

  • The analyst conducted a scenario analysis below to show the potential incremental benefits to revenue from the pricing change.

  • In the analyst’s base case scenario, Radke believes this could translate into a ~5% incremental upside for subscription revenue in FY23 and a ~1.2% lift in total revenue.

  • Radke did not adjust his quarterly or full-year estimates and will likely provide an update in the following preview published ahead of Shopify’s 4Q22 earnings release on February 15.

  • Price Action: SHOP shares traded lower by 0.23% at $47.22 on the last check Thursday.

Latest Ratings for SHOP

Date

Firm

Action

From

To

Feb 2022

Morgan Stanley

Maintains

Equal-Weight

Feb 2022

Credit Suisse

Maintains

Neutral

Feb 2022

Mizuho

Maintains

Neutral

View More Analyst Ratings for SHOP

View the Latest Analyst Ratings

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This article originally appeared on Benzinga.com

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Source: https://finance.yahoo.com/news/shopify-subscription-price-hike-another-165403210.html