Paradigm Capital analyst Kevin Krishnaratne says new Shopify(Shopify Stock Quote, Chart NYSE:SHOP) products and updates are helping to widen the funnel towards attracting new merchants.

In a research note to clients on June 20, Krishnaratne reiterated his “Buy” rating but upped his target from $275.00 to $375.00, representing a projected 12-month return of 11.3 per cent at the time of publication.

Shopify recently held its Unite 2019 annual partner conference, with Krishnaratne coming away from the event impressed by SHOP’s new Fulfillment Network along with updates to its retail POS, both of which he says should help the company further penetrate the brick-and-mortar space.

“Shopify’s differentiated platform is favourably leveraged to high-growth e-commerce trends and is the leading solution for merchants seeking simplicity in building an omni-channel experience to sell products wherever consumers may be. The company provides several front and back-end tools required to build a business so that merchants can focus on their own core competencies. We view Shopify’s platform as an essential utility for merchants who rely on it as they grow, which should drive continued success for the company following impressive gains over its ten-plus year history,” says Krishnaratne.

The analyst is maintaining his forecasts, which call for fiscal 2019 revenue of $1.52-billion and adjusted EBITDA of $47.4 million. (All figures in US dollars.)

“We see the product releases at Unite as further strengthening Shopify’s competitive moat, and we continue to see Shopify’s as the de facto commerce operating system for SMB’s and big brands giving us confidence in maintaining our Buy rating on the stock,” he said.