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Top analyst: Buy this e-commerce cloud play

An Apple iPad with the Shopify app is displayed at the entrance to the company's headquarters in Toronto, Ontario.
Kevin Van Paassen | Bloomberg | Getty Images
An Apple iPad with the Shopify app is displayed at the entrance to the company's headquarters in Toronto, Ontario.

Editor's note: TipRanks is a tech company that ranks analysts and financial bloggers based on their picks performance. The goal of this piece is to highlight an analyst who has a great track record, rather than the ones from the biggest firms.

There's a new e-commerce giant on the rise, according to this top Wall Street analyst.

Gene Munster of Piper Jaffray initiated coverage on Shopify on Tuesday morning with a "overweight" rating, as he believes the company has massive growth potential.

Although the e-commerce sector is a crowded arena, the top analyst explains that Shopify, a cloud platform enabling smaller retailers to sell goods online and in store, provides value to vendors with its variety of offerings and solutions.

Munster is a top-ranked Wall Street analyst. His picks have a 14.1 percent one-year average return. He is ranked in the top 4 percent of all analysts, according to TipRanks.

Here is why the analyst is bullish on Shopify.

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