PYPL - Square stock gains after Atlantic Equities upgrades to Overweight after pullback

Square (NYSE:SQ) stock rises 1.4% in premarket trading after Atlantic Equities analyst Kunaal Malde upgrades the fintech to Overweight, recommending that investors take advantage of the recent pullback in the stock now that its gross profit multiple is at the low end of the typical historical range. Malde focuses on three drivers: "Cash App is diversifying and improving the quality of its revenue mix as penetration of products such as Cash Card increases." Afterpay is adding "growth vectors" including a Buy Now, Pay Later business at scale and provides "significant potential synergies" such as accelerating Afterpay offline. Seller ecosystem is accelerating merchant acquiring gains and payment volume growth rates are tracking above historical levels. The $300 price target CY2022 year-end price target assumes stock holds to its low-20s gross profit multiple. Malde's Overweight rating tilts more  bullish than the Neutral Quant rating, which assigns a poor grade for Value, and agrees with

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Square stock gains after Atlantic Equities upgrades to Overweight after pullback