SQ - Square upgraded to Outperform at Cowen as Afterpay set to turbo-boost growth

Cowen analyst George Mihalos upgrades Square (NYSE:SQ) to Outperform from Market Perform as he sees the fintech's proposed acquisition of Afterpay (OTCPK:AFTPF) (OTCPK:AFTPY) boosting its "best in breed" growth even more. SQ stock rises 1.1% in premarket trading. "Post deal and even pre-synergies, we see the company delivering pro-forma gross profit growth in excess of 30%," Mihalos writes in a note to clients, adding that, at this stage, the deal looks like a "1+1=3 scenario." Expects Seller gross profit growth exceeding the low 20% growth rate he had forecasted through 2023; also sees further Cash App user monetization, "creating a greater halo effect across both segments." Lifts price target to $343 from $266. Mihalos's Outperform rating contrasts with the Neutral Quant rating and aligns with the average SA Author rating of Bullish (3 Very Bullish, 5 Bullish, 1 Neutral, 1 Bearish, 1 Very Bearish). During the past year, SQ's total return (+110%) exceeds

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Square upgraded to Outperform at Cowen as Afterpay set to turbo-boost growth