Keep Shopify Stock on Radar After 10:1 Split

Investors may want to keep an eye on Shopify (SHOP).

Just this morning, the SHOP stock split 10 for 1, sending the stock to $31.22.

“While it does not change the fundamentals for the stock, we believe this split could have a positive near-term impact on shares as some investors perceive lower priced shares of companies to be less expensive than higher priced ones,” D.A. Davidson analyst Tom Forte said in a note to clients.

Analysts at Stifel like the stock, readjusting its price target from $650 to $65, with a buy rating. Morgan Stanley also just resumed coverage with an equal weight rating. Even Benchmark says Shopify is at the top of the firm’s “waiting to upgrade list” thanks to its global scale.

While the chart is nothing to write home about, don’t write it off just yet. The stock split now puts SHOP at a low enough price where it could be quite attractive to investors. Plus, the pullback won’t last forever, and analysts are still bullish on the stock. Even better, the company does expect a recovery in revenue growth in the second half of the year.

We also have to consider that “Shopify currently has the largest ecommerce platform market share in the USA, with nearly one in three (32 percent) online businesses using it to power their stores,” according to Oberlo.com.

Shares of SHOP last traded at $31.40, down about 5% on the day.