Shares of Shopify (NYSE:SHOP) have already jumped 167% so far in 2020, but will surge to new all-time highs over the coming year.

That's according to KeyBanc Capital Markets analyst Josh Beck. On Tuesday, Beck raised his price target from $1,150 to $1,250, while maintaining his overweight (buy) rating on Shopify's stock. His new target represents potential gains for investors of roughly 17% over the stock's closing price on Monday of about $1,066. 

Warehouse robot moving a bin on a conveyor belt.

Image source: Getty Images.

Beck sees the Shopify Fulfillment Network, which launched in 2019, as a catalyst for growth, and he is more bullish after a recent deep dive into its process. The company said late last year that it planned to spend more than $1 billion to build out its fulfillment capabilities over the coming five years, with the eventual aim of providing two-day shipping to 99% of the U.S., to better compete with Amazon (NASDAQ:AMZN).

He noted that the initiative has developed into "a full-fledged, tightly integrated fulfillment solution for Shopify merchants and includes order/inventory management solutions, branding and data controls, and access to scalable, flexible warehousing space to sell across multiple channels."

Shopify jump-started its ambitions last year with the $450 million acquisition of privately held 6 River Systems, a leading provider of collaborative warehouse fulfillment technology. Since then, the company has developed a vast array of software and robotic systems that automate and optimize many of the fulfillment functions.

Will Shopify's stock price hit $1,250? The evidence suggests that Beck's thinking is sound. Fulfillment is the natural next step in Shopify's evolution, giving its merchants the tools necessary to compete in an e-commerce world ruled by Amazon. Shopify generated $1.58 billion in revenue last year, but fulfillment represents a total addressable market of $500 billion in the coming years, helping to illustrate the magnitude of its opportunity. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.