Shopify (SHOP) shares rose as much as 1.7% in Friday trading after Baird raised the price target of the e-commerce platform operator to $208 from $188.
“Our latest checks suggest Shopify continues to consolidate share,” Baird wrote in a research note.
The analyst said the consolidation happens despite intensifying competitive concerns from Adobe (ADBE), Facebook/Instagram (FB), Microsoft (MSFT), Salesforce (CRM), and Square (SQ), adding he believes it will take years and significant investment for others to catch up.
“While we would not dismiss the risks/opportunities for any of these companies, we note that Shopify’s platform required >$1 billion in R&D and marketing investment just over the past four years, and remains differentiated from current alternatives,” the analyst wrote.
Shopify shares were trading at $195.9, up 0.6%, at 2:15 p.m. ET in New York on Friday. The stock has advanced more than 41% since the beginning of the year, outperform the S&P Index that has gained more than 15%.