Goldman Sachs analyst Louise Singlehurst raised the firm's price target on Farfetch (FTCH) to $45 from $29.60 and reiterates a Buy rating on the shares. The stock closed Monday up $3.86, or 14%, to $32.00, after the information reported that Alibaba (BABA) in advanced talks to invest in the company.

The analyst thinks Farfetch could double its market share by 2023 to 10% and reach 30% long term. Farfetch's platform is the largest amongst the luxury peers and drives the highest customer engagement but has just 2.5M active users despite its global presence, Singlehurst tells investors in a research note.

The analyst thinks e-concessions will facilitate the industry's expansion online and says "this is where Farfetch dominates." Farfetch's current share price implies a 15% long-term market share, which looks conservative, says Singlehurst.