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Shares of Shopify (SHOP) were falling a second consecutive day after an additional analyst downgraded the stock this week.

Morgan Stanley's Brian Essex cut Shopify to underweight from equal weight on Tuesday, a day after Guggenheim analyst Ken Wong downgraded shares to neutral from buy and stated the valuation was stretched following a recent stock-price advance. 

Guggenheim eliminated its price target, as the stock has soared more than 80% in 2019, closer to fair value.

Essex called the platform "best in class," but cited an "unwarranted" year-to-date rally in the stock. Since less than half of the company's revenue comes from subscriptions, it is not worthy of a full multiple as an SaaS, or software-as-a-subscription. He also noted elevated customer churn and low gross margins.

Essex raised his price target to $209 from $173, about 17% off its Monday close. The stock declined 0.5% to $249.55 on Tuesday.

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Analysts have raised their consensus one-year target price on the stock by 38% in the past three months, according to Bloomberg.

Shopify's consensus target price is $260.38, long-term growth rate is 26.5%, and consensus rating is overweight, according to FactSet. 

Its 52-week range is $117.64 to $266.72 and it has a market cap of 27.63 billion.

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