Shopify Inc. (SHOP.TO, SHOP) was upgraded to Buy from Hold at TD Securities on Thursday.

Analyst John Shao maintained a price target of US$129 on shares of the Ottawa-based multinational e-commerce company.

"The combination of a strong quarter, continued growth momentum despite seasonality, and the -10% intraday performance (-30% YTD) represents an attractive entry point for investors to own the de facto modern-day eCommerce infrastructure with durable, high growth," Shao said in a note to clients.

"While concern about Q1 FCF margin at low-to-mid teens was due to a slightly higher tax rate, we do not expect it implies weakness throughout the year," the analyst said. "The strong fundamentals support our upward estimate revisions."

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