Why Square Stock Just Popped 5%
Shares of point-of-sale payments specialist Square (NYSE: SQ) are rolling higher in Thursday trading, up 4.9% as of 1:35 p.m. EDT after analysts at German investment bank Deutsche Bank hiked their price target on the $157 stock all the way to $180 — a 28.5% increase over the banker’s previous valuation. Deutsche Bank bases its new valuation on “significant potential near-term tailwinds” it sees supporting the stock now, followed by “sustainably higher long-term growth rates coming out of the pandemic” in the future. “The recent official breakout of the Seller and Consumer (Cash App) ecosystems as separate segments,” says Deutsche Bank in a note covered by StreetInsider.com today, suggest that the 32% increase in gross profits that Square showed in the second quarter could soar as high as 53% growth in the third quarter — and perhaps zoom as high as 61% in the fourth quarter.
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