Shopify Endorsed by AI Narrative: Bank of America Targets $150

Bank of America has reinstated coverage on e-commerce giant Shopify, placing a significant bet on the company's infrastructure strength and growth potential amidst the artificial intelligence era. Analysts are capitalizing on market jitters, issuing a strong 'buy' recommendation as a counter-move.

Infrastructure Leader in AI-Driven Commerce

In a report by analyst Tal Liani, Shopify Inc. (NASDAQ:SHOP) was assigned a "Buy" rating with a price target of $150. This target is based on a 22x 2027 estimated enterprise value-to-gross profit (EV/GP) multiple. This valuation represents a distinct premium over the software peer group average of 18.1x.

Growth Expectations Outpace Peers

Bank of America anticipates that Shopify will deliver significantly faster revenue growth than its software counterparts, justifying the valuation premium. The company's revenue growth projections are as follows:

■Expected revenue growth for 2026: 28.3%

■Expected revenue growth for 2027: 24%

'Platform Bypass' Fears Create Valuation Opportunity

Investors are debating whether AI-native interfaces could weaken Shopify's role in the commerce stack. However, the bank notes that these concerns regarding a potential "platform bypass" have contributed to the stock's year-to-date decline. This decline has created what the firm describes as an "attractive entry point." The analyst posits that as discovery shifts to agentic interfaces, value accrues to the transaction and infrastructure layers where Shopify is deeply embedded.

Kemal Tekin Note: As we observe tech stocks across emerging markets, investors often misprice "disruption." The critical takeaway from the Shopify thesis is not that AI takes over the interface, but rather the criticality of the backend transaction infrastructure. This is not merely a stock movement; it is a signal that "layer value" in the digitalization of global trade is being redefined. On the EM desk, we apply similar dynamics when identifying entry points for Asian tech stocks with comparable infrastructure plays.