SQ - Square upgraded to Neutral at BofA on more balanced risk/reward

November, 30 2021 07:45 AM Square Inc. Class A

Bank of America Securities analyst Jason Kupferberg upgrades Square (NYSE:SQ) to Neutral as he sees the stock's risk more accurately price in. Square (SQ) stock is trading ~25% below its August highs and down ~15% since its earnings on Nov. 4. Lifts price target to $221 from $210; now based on 21x (vs. previous 20x) BofA's '22 gross profit forecast. Square (SQ) stock rises 0.7% in premarket trading. "We hesitate to get more positive on the stock until there is better visibility on the near-term and medium-term trajectory of Cash App GP, as SQ has not yet reinstated top-line guidance," Kupferberg writes in a note to clients. He also is aware that growth stocks like Square (SQ) could stay under pressure if Treasury yields climb again. He's expecting management to discuss more specifics around Afterpay (OTCPK:AFTPY) revenue synergies on Square's (SQ) Q4 earnings call; note that the Afterpay acquisition may close

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Square upgraded to Neutral at BofA on more balanced risk/reward

Company Name:	Square Inc. Class A
Stock Symbol:	SQ
Market:	NYSE
Website:	block.xyz

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