Wayfair (NYSE:W) stock has been rallying lately, but at least one Wall Street pro thinks it has more room to rise. On Tuesday, an analyst at Piper Sandler lifted his short-term price target to $225, in an action that helped push the stock up more than 10% in early trading.

The analyst affirmed his positive rating on the stock and pushed his price target up to $225 from $220. Piper Sandler thinks the e-commerce platform's business is still being undervalued on Wall Street.

A delivery man dropping off several boxes at a home.

Image source: Getty Images.

Wayfair's last earnings report, which captured only the earliest days of the COVID-19 pandemic lockdowns, showed soaring sales growth as people stocked up on home products and moved more of their shopping online. Its leading home furnishings platform puts Wayfair in an ideal position to take advantage of that increasing demand.

Investors are even more excited about the prospect for sustainable profitability that might begin as early as the fiscal second quarter. Wayfair has lost money in each of the last four fiscal years, but management is targeting an end to that streak by cutting costs in areas like tech development and advertising.

That improving profit picture could support strong returns for investors going forward, especially if COVID-19 speeds the global shift toward online shopping. However, the intense optimism around the stock might temper those gains, given that shares have already doubled just since the start of 2020.