Shares of Square Inc. are off 2% in Thursday morning trading after UBS analyst Eric Wasserstrom downgraded the stock to sell from neutral while raising his price target to $63 from $54. He said that the downgrade reflects a "weak outlook" for Square's seller business and the limited visibility into its recovery trajectory. "More significantly, although we are increasing our price target to $63 to reflect a stronger outlook for Cash App, Square's current valuation exceeds this revised level, and, in our view, prices in an accelerated recovery in Seller volumes and revenues in most scenarios, an outcome we consider unlikely," Wasserstrom wrote. Square's stock has dropped 3.7% over the past three months as the S&P 500 has declined 10.9% Read More...
Shares of Square Inc. are off 2% in Thursday morning trading after UBS analyst Eric Wasserstrom downgraded the stock to sell from neutral while raising his price target to $63 from $54. He said that the downgrade reflects a “weak outlook” for Square’s seller business and the limited visibility into its recovery trajectory. “More significantly, although we are increasing our price target to $63 to reflect a stronger outlook for Cash App, Square’s current valuation exceeds this revised level, and, in our view, prices in an accelerated recovery in Seller volumes and revenues in most scenarios, an outcome we consider unlikely,” Wasserstrom wrote. Square’s stock has dropped 3.7% over the past three months as the S&P 500 has declined 10.9%
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