Bank of America, Jefferies and Stifel Upgrade Shopify Stock

Multiple financial institutions have upgraded their outlook on Shopify Inc., viewing the company as a primary beneficiary of the shift toward AI-driven agentic commerce. Bank of America reinstated coverage on July 7 with a Buy rating and a $150 price target, citing expected revenue growth of 28.3% in 2026 and 24% in 2027. This positive shift follows a 23% year-to-date decline in share price, which included a significant sell-off on May 5 after the company forecast slower second-quarter growth and higher AI spending.

Jefferies Group and Stifel also upgraded the stock from Hold to Buy, setting price targets of $160 and $150, respectively. Analysts from these firms now characterize artificial intelligence as a distribution channel rather than an existential threat. They point to an eightfold increase in AI-generated traffic to stores in the first quarter and the development of the Universal Commerce Protocol to manage back-end data and payments.

To further support growth and investor confidence, Shopify expanded its share repurchase authorization to $5 billion. The company also plans to launch a redesigned partner program on August 10, specifically aimed at incentivizing the recruitment of larger merchants.