Shopify's (SHOP) near-term numbers are likely better than feared despite tariff concerns, based on conversations with merchants, agencies, and third-party logistics, Deutsche Bank Research said in a report Thursday.

Ahead of the company's Q1 results on May 8, Deutsche Bank noted that while the quarter's performance is expected to be solid, the focus will likely shift to management's outlook on the impact of tariffs on its merchant base.

The firm highlighted that after "Liberation Day," investor inquiries have centered on Shopify's exposure to the US, cross-border trade, dropshipping from China, and potential risks from consumer spending trends and discretionary spending.

Deutsche Bank added that most investor conversations are focused on the potential impact of tariffs on the company's merchant base, particularly in Q2 and over the coming years. However, it does not expect the Q1 earnings call to provide clarity on these issues, given that it's still early days.

Deutsche has a buy rating and a $125 price target on Shopify stock.

The company's shares rose 2.9% in recent Thursday trading.

Price: 97.73, Change: +2.73, Percent Change: +2.87