Square Price Target Raised To $180 From $140 At Deutsche Bank
Deutsche Bank analyst Bryan Keane raised the firm's price target on Square to $180 from $140 and reiterates a Buy rating on the shares. The stock closed Wednesday down 67c to $150.37. After breaking out the company's seller and consumers businesses further by product, the analyst's updated upside model sees Square's gross profit growth potentially accelerating from 32% in Q2 to as high as 53% in Q3, above the Street estimate at 40%, and 61% in Q4, sustaining at 55% in fiscal 2021. The Cash App has significantly outperformed during the current pandemic gaining new highly engaged customers to monetize and accelerate product adoption through cross-sell, Keane tells investors in a research note. The analyst's upside analysis points to "significant potential near-term tailwinds and sustainably higher long-term growth rates" coming out of the pandemic for Square.
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