Shares of Square Inc.
rose 0.8% in premarket trading Friday, after Susquehanna analyst James Friedman turned bullish on the credit-card payment processing company, citing valuation and potential for future gross payment volume (GPV) growth. Friedman raised his rating to positive after being at neutral for the past 11 months. He reiterated his $77 stock price target, which is 24% above Thursday’s closing price of $62.03. The stock had tumbled 22% over the past three months, compared with a 2.1% decline in the S&P 500
amid concerns over valuation and decelerating margin expansion and GPV growth. “But we think the reinvestment that has muted the margin cadence may generate future GPV improvement and if so, we would expect the stock to follow,” Friedman wrote in a note to clients. Square is slated to report third-quarter results on Nov. 6.
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