Q: Hello, is shop a buy, sell or hold. Please give a possible positive and negative for your answer. Also at what price would you consider shop a good buy and a great buy.
Thanks a million
Thanks a million
5i Research Answer:
We would view it as a BUY; the company is still growing very fast, buying back stock, has a great balance sheet and a solid global market share. The AI fear seems far overblown to us. Customers have had the ability for years to set up their own merchant sites but choose SHOP instead for convenience, efficiency and cost savings. Stock valuation is still at a premium, but as earnings rise and the stock drops this obviously improves. We would be quite comfortable buying at $115 for a three year minimum term.