Shares of Shopify Inc. /zigman2/quotes/209033712/composite SHOP +3.55% climbed 0.9% in premarket trading Tuesday, putting them on track to open in record territory, after Susquehanna analyst John Coffey raised his price target by 37% ahead of the ecommerce platform company's fourth-quarter report, citing optimism over the payments business. Coffey boosted his price target to $1,300 from $950, while keeping his rating at neutral. His new target is still 11% below Friday's closing price of $1,455.49. "Our thesis on [Shopify] is it is quickly becoming a payments company that does software -- versus its earlier existence as a software company that did payments," Coffey wrote in a note to clients. "We believe last week's new Facebook/Instagram partnership, which allows Shop Pay ([Shopify's] consumer-facing, PayPal-like wallet) to be used on the checkout pages of Facebook and Instagram, furthers this narrative." Shopify is scheduled to report earnings before Wednesday's open. The stock, which is headed for an open above the Feb. 11 record close of $1,463.31, has fun up 58.3% over the past three months through Friday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.49% has advanced 8.5%.