RBC Capital Markets lowered its price target on Shopify Inc. (SHOP.TO, SHOP) to US$170 from US$200.

Analyst Paul Treiber maintained an Outperform rating on shares of the Ottawa-based multinational e-commerce company following its quarterly results on Wednesday.

The stock declined $12.13, or 7%, to $160.41 on the Toronto Stock Exchange.

"Even though there were a few nitpicks (e.g., FCF, taxes), Shopify reported a fundamentally strong quarter," Treiber said in a note to clients. "For example, Q4 revenue beat consensus by 2.2% and Q1 guidance implies revenue growth rises to a 4-year high, above consensus."

"Although we believe that Shopify is likely to be an AI beneficiary, Shopify's shares are getting caught up in broader AI disruption fears," the analyst said.

"Continued strong growth and AI traction may help stabilize Shopify's valuation."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)