Slack (WORK) - Get Report  was rising in trading Wednesday after analysts at Baird initiated coverage of the work messaging service with an outperform rating due to its superior competitive position to its peers. 

The firm gave Slack a $44 price target, representing a potential upside of 25% from the stock's closing price Tuesday of $35.20.

Baird analyst William Power believes that Slack has a strong disruptive position and "has taken the team messaging and collaboration market by storm."

The stock has taken a dip since its strong debut earlier this month as the company's direct listing had the company valued at about $19 billion. The company made about $400 million in 2018, meaning its valuation was about 40 times its trailing revenue. 

Despite its strong market position, Rishi Jaluria of D.A. Davidson and Dimitra Kallianiotis of Atlantic Equities both have estimated that the company won't turn a profit until 2022 at the earliest. 

Slack shares were rising 5.85% to $37.26 in trading Wednesday.

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