Bank of America analyst Jason Kupferberg upgraded Square Inc. to Neutral from Underperform with a price target of $221, up from $210, implying a 3.85 percent upside.
The “deceleration risk” of the company’s Cash App business has been “more appropriately” priced in as the stock now trades 25 percent below August highs and 15 percent since reporting a Q3 earnings miss earlier this month.
Kupferberg adds that he hesitates to take a more constructive stance on Square until better visibility on the near-term and medium-term trajectory of the Cash App gross profit.
Square shares closed lower by 2.11 percent at $208.38 on Tuesday.
By Anusuya Lahiri
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