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Investing.com — Square Inc (NYSE:SQ) stock got a boost Wednesday, after SMBC Nikko Securities analysts initiated coverage on the stock with an outperform rating.
The payment processing company’s shares climbed to a high of $252 on Wednesday, although they have since lost momentum, currently trading at $250.79, up 0.72%.
SMBC Nikko Securities analyst Andrew Bauch put a $300 price target on Square shares.
The analyst said he “believe SQ’s increasing focus on connecting the Seller and Cash App ecosystems is one of the most transformational opportunities in FinTech.”
Bauch also cited the pending $29B acquisition of Afterpay, a Buy Now, Pay Later provider, as reasons why they have put forward their bullish view on the stock.
“We see this thesis coming to fruition much sooner than originally expected, coupled with material revenue synergy opportunities Our YE’22 Price Target (NYSE:TGT) of $300 is predicated on 21x our 2023 base case gross profit of $9.2B,” he added.
