Loop Capital Cuts Shopify to Hold on Valuation; KeyBanc Lifts Target

Shopify Inc. shares came under pressure after Loop Capital cut its rating on the e-commerce software provider to Hold from Buy, keeping a $120 price target. The brokerage said the downgrade reflects valuation concerns rather than any change in the company’s underlying fundamentals, which it still views as strong over the long term. The more cautious stance contrasts with KeyBanc Capital Markets, which earlier in the day lifted its price target on Shopify to $145, citing continued gross-merchandise-volume momentum, product innovation and international expansion. The diverging views underscore investor debate over how much of Shopify’s growth outlook is already priced into the stock.