According to analysts at DA Davidson in a note Wednesday, the pullback in Shopify (NYSE:SHOP) shares has presented a buying opportunity. The firm reiterated its Buy rating on the stock and raised the price target to $90 from $86 per share.
The view follows what is described as SHOP's "strong" 4Q results reported on Tuesday.
The results "continue to showcase Shopify's ability to monetize its unified platform offering and drive efficient growth," said the analysts. "Shopify continues to show signs of strong momentum with 4Q results headlined by 24% revenue growth."
Despite high expectations heading into the print, the firm notes that the company posted positive momentum, including a top-line beat and improving profitability metrics.
With SHOP shares falling over 13% Tuesday, the analysts said they "view the recent price movement as buying opportunity."