Square Analysts Raise Targets, Estimates After Earnings Report
Square (SQ) – Get Report shares climbed on Friday as analysts reacted positively to the rising payment-technology star’s first-quarter earnings report.
Revenue soared almost four times in the quarter to $5.06 billion from $1.38 billion in the year-earlier quarter. That latest figure creamed the FactSet analyst consensus of $3.34 billion in the latest quarter.
Square shares recently traded at $237.58, up 6.5%. They have climbed 20% in the past six months amid mushrooming digital transactions during the pandemic.
As for the analysts, J.P. Morgan’s Tien-tsin Huang rates Square overweight and raised his price target to $300 from $250.
“We are raising our estimates and price target in response to impressive acceleration in both Seller and Cash App in the first quarter,” he wrote.
“We expect SQ to take the transient benefits from stimulus and economies reopening to habituate usage of its increasing array of modern products. [That will be] supported by a formidable investment in marketing and product development this year.”
BMO Capital Markets’ James Fotheringham rates Square market perform and lifted his target to $269 from $237.
“Economic stimulus and reopening has inspired acceleration on both sides of SQ’s network (Seller gross payment volume up 20% year over year and Cash App up 140%),” he wrote.
“SQ is investing aggressively ($1 billion-$1.1 billion versus prior guide of $800 million-$900 million) to broaden and habituate usage of its product set, so that much of this exceptional growth might prove enduring. Valuation is the only sticker.”
TheStreet.com Founder Jim Cramer on Friday offered commentary about Square on the website.
