Square Leverages Data With New Payroll App, Stock Surges

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    Super Harley

    Digital payments and point of sales…


    Super Harley

    [b]Nomura Instinet analyst Dan Dolev Upgrades Square and increases price target to $125 from $86


    Cash App is more popular than Venmo.
    Square should be next to join FANG (Facebook, Amazon, Netflix, Google).
    Square’s stock price has more than doubled this year, and could rise another 45%, Nomura told clients Tuesday.

    “Similar to FANG stocks that have disrupted traditional markets with massive global total addressable markets (TAMs), SQ’s fully cohesive solutions and rapid rate of innovation suggest that it is en route to disrupt the global payments ecosystem,” analyst Dan Dolev said in a note.

    Expensive? No says Doley

    “But is SQ too expensive? Not when taking into account its stellar 45% expected three-year revenue CAGR, which makes it screen more attractively than many payment peers and FANG stocks, in our opinion. Not surprisingly, valuation is a key deterrent for some investors. However, when factoring in the expected growth using a Price to Sales to Growth (or PSG ratio) shows that SQ is attractive vs. both payment peers and FANG stocks


    Square Inc. (NYSE: SQ) started as Market Perform with a $96 price target at BMO Capital Markets.

    Square Inc NYSE: SQ · September 27, 2:52 PM EDT
    97.73 ▲ 3.08 (3.25%) After hitting ATH at 99.13

    Super Harley

    [b]Square Falls 10% After CFO Resigns

    Square (SQ) fell by 10.9% to 69.03, marking a second straight day of double-digit losses. CFO Sarah Friar will leave to become the chief executive of Nextdoor, a social network startup focused on local communities. Square shares already had dropped 10% during Wednesday’s market sell-off.

    Credit Suisse analyst Paul Condra said in a note to clients Thursday that Friar might have had a long wait to ascend the Square throne.
    “While it had often been remarked that Ms. Friar might one day become Square’s CEO, we believe current CEO Jack Dorsey intends to remain in his position for the foreseeable future and will continue to lead the company on its current path,” Condra wrote.

    Square CFO Part Of Company Success

    “Friar has clearly been an integral part of Square’s success over the last several years, and the news of her departure is certainly a negative development,” Stifel analyst Scott Devitt said in his note. “However, we expect Square will ultimately hire a candidate who embraces the company’s long-term vision of building a uniquely positioned small- and medium business ecosystem with a continued focus on product/services innovation.”
    BTIG Research’s Mark Palmer maintains a sell rating. “Friar’s pending departure from Square introduces a significant new element of uncertainty into the company’s story that may further weigh on its valuation,” Palmer said in a report.

    “As Square’s CFO, Sarah steered us through an IPO and helped build a growing ecosystem of businesses that will scale into the future,” Dorsey said in a statement.

    Square reports third-quarter earnings on Nov. 7.

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