Shopify (NYSE:SHOP) shares were cut to Underweight from Neutral at Piper Sandler on Tuesday, with analysts lowering the price target to $56 from $58 per share.

Analysts said in a note that the firm decided to revisit its investment thesis on the stock as it again exceeds $70 per share.

“Shares have substantially outperformed this year; catalyzed by the exit of the logistics business & newfound emphasis on profitability,” said the analysts. “The company is clearly a commerce platform juggernaut with 2M+ merchants powering $200B+ of GMV while growing top line >20%.”

However, they added that at present, SHOP shares hold an “untenable valuation” as growth and profit assumptions embedded in the shares today are “too aggressive.”

“Macro, execution, or near-term demand are not catalysts for our rating change, but we believe fundamentals are set to moderate in 2024 as the company clears events unique to 2023,” the analysts added.