Shopify (SHOP) is expected to deliver better-than-expected Q2 results, driven by robust gross merchandise volume, revenue growth and operating profit likely to exceed Wall Street forecasts, Deutsche Bank said Friday in a note.

Industry feedback and data point to "stability post the initial Liberation Day frenzy" with Shopify continuing to gain market share through its enterprise, international and point-of-sale initiatives, Deutsche Bank said.

Revenue is forecast to rise 27% from a year earlier, driven by GPV and broader adoption of merchant solutions, while monthly recurring revenue may trail estimates because of free trial issues, the note said.

Gross margins may be pressured by a recent PayPal (PYPL) accounting change, though efficiencies from generative AI and restrained marketing spending may support a bullish non-GAAP profit scenario of $395 million, the note said.

Deutsche Bank has a buy rating on Shopify stock with a price target of $135.

Shopify's Q2 results are expected Aug. 6.

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