The Globe and Mail reports in its Tuesday, April 29, edition that Scotiabank Capital analyst Kevin Krishnaratne is keeping his "sector perform" recommendation for Shopify intact. The Globe's David Leeder writes in the Eye On Equities column that Mr. Krishnaratne slashed his share target by $30 to $90 (all figures U.S.). Analysts on average target the shares at $122.03. Mr. Krishnaratne says in a note: "While Shopify doesn't disclose the size of its drop shipping business, we estimate it at 10 per cent of GMV [gross merchandise volume] with China accounting for 30 per cent of the mix or $10-billion. If the U.S. administration goes ahead with plans to eliminate the de minimis exemption for goods imported from China (no taxes on items less than $800), SMB's who have solely been relying on this model may be at risk. We have adjusted our GTV estimates in FY25 and FY26 by $5-billion (half year impact) and $10-billion, respectively, to reflect the removal of drop shipping activity from China. We note more mature SMBs may be able to source from alternative countries or absorb the COGS increase and continue to operate. Importantly, we have not made any adjustments related to SSS trends across the rest of Shopify's merchant base."