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Investing.com — Square Inc (NYSE:SQ) was upgraded by Bank of America analyst Jason Kupferberg on Tuesday, although the stock has been unable to gain any traction from the new rating.
Kupferberg upgraded Square to neutral from underperform, raising the price target to $221 from $210. Square stock fell 2.4%.
The BofA analyst told investors in a research note that they see a more balanced risk-reward at current levels and the focus is now switching to the Afterpay acquisition.
“We continue to believe in the strategic rationale for acquiring Afterpay, which should fit neatly into SQ’s Seller and Cash App ecosystems,” stated Kupferberg.
However, he said that Afterpay’s Buy Now, Pay Later service may have a “somewhat limited capability.”
In addition, the analyst pointed to Square CEO Jack Dorsey stepping away from his role at Twitter Inc (NYSE:TWTR) as a benefit for SQ, believing that it has come at the right time.
Despite the comments and upgrade, the neutral rating has been unable to breathe life into the stock, which is down around 25% since August and 2.1% today, following the overall market lower.
