SPS Commerce (SPSC) is well-positioned to capture the electronic data interchange market share, Morgan Stanley wrote in a Monday research note.

While a slump in SPS Commerce's organic growth raised questions on growth trajectory and market saturation, supplier diversification from retailers due to tariff changes could improve net customer additions and subsequently revenue growth, according to the note.

SPS Commerce's recent acquisitions and investments in customer service imply organic revenue can steadily rise over the next three years as margins are currently at an "inflection point" as the company begins to realize the operating leverage from those investments, analysts wrote.

"We model organic fulfillment revenue growing at a 13% compound annual growth rate, which conservatively assumes annual market share gains slow from around 150 to 100 basis points," Morgan Stanley noted.

The brokerage said it initiated coverage with an overweight rating on the stock and a $180 per share price target.

Shares of the company rose 6.8% in recent trading.

Price: 140.71, Change: +8.98, Percent Change: +6.81