The digital payment provider Square Inc. (SQ) closed the trading session on Friday with a rise of 2.25 percent at $195.97. The company received an improved rating update last week by KeyBanc.
Even if you’re not actively in crypto, you deserve to know what’s actually going on...
Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.
Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free. .
The experts at analysts firm was expecting the company’s stock to increase by more than 40 percent. On November 16, the firm reiterated its “Overweight” rating for the stock while raising the target price from $215 to $250 which was nearly 40 percent more than the stock’s price at the time. The current price is about 28 percent away from that assigned target price as the company gained more than 10 percent during the past week.
The company also gets an improved rating on November 10, when BITG Research raised the recommendation from “Neutral” to “Buy” but has kept the target price of $215 unchanged.
The primary driver of Square’s growth, according to analysts, will be the CashApp. Within this service, new products, such as card payments, direct deposits, loans and the ability to invest in securities, help to increase CashApp users’ engagement and retention rates. Moreover as customers begin using more services within the app ecosystem, the long-term value of each subscriber will grow.
KeyBanc predicts that revenue from Square apps will grow by more than 70 percent annually through fiscal year 2022. In this case, CashApp will take on the most important role. An app that was intended as an add-on can actually be a major catalyst for the entire business. Square’s revenues from CashApp are becoming more valuable particularly against the background of the COVID-19 pandemic and the trends it has generated. In particular, the growth of non-cash payments has been spurred by restrictions on traditional trade and momentum in e-commerce. A lot of conservative users have switched to this type of computation due to the pandemic.
With a year to date rise of more than 213 percent, Square Inc.’s (SQ) current market capitalization now stands at $86.43 billion.