Shares of Sq. (NYSE:SQ) climbed greater than 6% on Monday, following the discharge of a bullish analyst observe from funding bank Barclays.
Barclays analyst Ramsey El-Assal reiterated his “chubby” score on Sq.’s stock and boosted his goal price from $90 to $115.
El-Assal believes that Sq.’s retailers will be capable of bounce again from the coronavirus pandemic higher than many traders at present anticipate. He additionally predicts that sturdy demand for Sq.’s Paycheck Safety Program loans will assist to offset declines in its Sq. Capital lending enterprise throughout the COVID-19 disaster.
Barclays is bullish on Sq.’s stock. Picture supply: Getty Photos.
Furthermore, El-Assal says stable progress in Money App customers and Sq.’s latest acquisition of Spanish peer-to-peer funds start-up Verse could possibly be “underappreciated drivers” for its stock.
With 1000’s of small companies compelled to shut due to the pandemic and corresponding social-distancing measures, traders feared that many Sq. retailers wouldn’t survive. Nonetheless, if these considerations show overblown — and Sq.’s retailers are in a position to climate not solely the closure of their shops but additionally the present coronavirus-related financial downturn and shifting client spending habits — then traders may also be underestimating Sq.’s near- and long-term progress prospects. And if that is true, then Sq.’s stock probably has extra upside forward.