Coupang (CPNG) is poised to meet its growth targets this year despite market uncertainties as its market share gains continue, Morgan Stanley said in a note Tuesday.

"Superior service driving traffic, which drives selection, scale, margins, and comes back in the form of benefits for consumers, continues to play out smoothly," the investment firm said, adding that Coupang is also set to benefit from a weaker US dollar.

Another tailwind for the company is the expected decline in operating, general, and administrative costs as percentage of revenue this year, Morgan Stanley said.

Morgan Stanley estimates Coupang's product commerce margins expanding to 9% and adding $700 million to adjusted earnings before interest, taxes, depreciation, and amortization this year, more than offsetting the expected increase in losses from the company's developing offerings.

Morgan Stanley made Coupang its new Top Pick and raised its price target for the stock to $32 from $27, while maintaining its overweight rating.

Shares of Coupang were up nearly 3% in recent Tuesday trading.

Price: 28.25, Change: +0.80, Percent Change: +2.90