Shopify (TSE:SHOP) has recently experienced a downturn in its stock performance, prompting many investors to consider it as a potential buying opportunity. Analysts from various financial institutions, including Morgan Stanley, Citigroup SA, and BNP Paribas SA, have all upgraded their ratings on Shopify to Buy in the past month, indicating a positive outlook on the company’s future.

Stefan Slowinski from BNP Paribas SA, who boasts a 100% success rate on Shopify stock with an average return of 10.57% per rating, expressed confidence in the stock’s potential. Additionally, David Klink from Huntington National Bank highlighted Shopify’s significant presence in the e-commerce sector and suggested that the recent decline in its stock price may have been exaggerated.

One key aspect that analysts are considering is Shopify’s potential in the field of artificial intelligence (AI). With the increasing integration of AI in online shopping experiences, Morgan Stanley believes that Shopify could emerge as a major player in this space. The company’s ability to leverage AI tools effectively could give it a competitive edge in the market.

On Wall Street, analysts have a Moderate Buy consensus rating on Shopify stock, with 12 Buy recommendations, 14 Holds, and two Sells in the past three months. Despite a 22.88% increase in its share price over the last year, the average price target of C$112.97 per share suggests a further 6.43% upside potential for investors.