Buckingham Research analyst Chris Brendler reiterated his bullish view of Square Inc.’s stock SQ, +2.50% and called it his “top pick by far” in payments. “We think the market is missing what we view to be a key positive from 1Q results: the shockingly high [total payment volume] penetration in the new Square Card for Sellers,” he wrote, referring to a debit card that lets Square merchants immediately spend their funds at stores. With TPV penetration at “already over 20%, we think this is much higher than anyone expected and our analysis suggests huge upside potential, ~12 ppt tailwind to 2021 revenue growth.” Brendler rates the stock a buy with an $100 price target. Shares have dropped 14% over the past three months, as the S&P 500 SPX, +1.13% has risen 2.7%.
Square Inc. Cl A shares were trading at $66.81 per share on Thursday afternoon, up $1.58 (+2.42%). Year-to-date, SQ has gained 19.11%, versus a 15.99% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of MarketWatch.