Shopify's (SHOP) Q3 results showed the company is benefitting from its "leading market positioning, rapid innovation and strong execution," Morgan Stanley said in a note Wednesday.

Those factors came together to support the company's "momentum across merchant sizes, customer cohorts, geo's, channels and verticals," the note said.

Shopify is still a "true growth company delivering consistent, strong results, and leading the innovation charge across the commerce landscape," the investment firm said.

Morgan Stanley highlighted the fact that Shopify delivered an increase in headline gross merchandise volume, or GMV, of 32% year on year, which was a second consecutive quarter of above 30% GMV growth.

Meanwhile, Morgan Stanley said it sees Shopify as being well placed for the Agentic commerce transition due to factors like its data advantage resulting from "millions of merchants, billions of transactions," as well as its culture of innovation, and its partnerships with ChatGPT, Microsoft's (MSFT) Copilot, Perplexity and others.

Morgan Stanley kept its overweight rating on Shopify and lifted its price target to $192 from $165.

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