Investing.com -- Global-E Online Ltd (NASDAQ:GLBE) shares rose 2.1% on Monday after Morgan Stanley upgraded the cross-border e-commerce platform to Overweight from Equalweight, citing persistent underestimation of the company's same-store sales durability. Analyst James Faucette raised his price target on the stock to $50 from $46, pointing to Global-E's critical role in removing friction from international online retail.
The brokerage highlighted that Global-E's same-store sales growth has remained in the mid-teens or better, exceeding its historical target range of 10% to 12% by 500 to 600 basis points. While management expects some moderation as foreign exchange tailwinds ease and Canadian comparison hurdles toughen, Morgan Stanley believes sustained growth at or above 12% will reinforce investor confidence in the company's ability to maintain overall gross merchandise volume (GMV) expansion above 30%.
Against that backdrop, Morgan Stanley raised its financial estimates across the board, driven primarily by a substantially more constructive view on net dollar retention (NDR). The firm now models NDR at 125%, 123%, and 121% from 2026 through 2028, up from previous projections of 120%, 120%, and 118%.
The upgrade also underscores valuation appeal, with the analyst noting that the stock trades at roughly 18 times projected 2028 GAAP earnings per share despite delivering durable 30% earnings growth. Faucette noted that the shares appear "fundamentally mispriced" at current levels, identifying the scaling of Shopify's Managed Markets, increased take-rate disclosures, and gross profit momentum as key catalysts for multiple expansion.
Original Article
Global-E Online gains as Morgan Stanley sees persistent growth durability
