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Square stock rises after Buckingham Research turns bullish
By: MarketWatch | August 6, 2018

Shares of Square Inc. SQ, +0.70% are up 2% in Monday morning trading after Buckingham Research analyst Chris Brendler upgraded the stock to buy from neutral and raised his price target to $85 from $65. He had downgraded the stock to neutral back in June. "No doubt Square is a fantastic, fascinating story, but we've struggled with the valuation given astronomic multiples (currently 57x consensus 2020 EPS) and an intensely competitive core merchant acquiring business," he wrote. "However, after such strong 2Q results, both these concerns fade considerably." Brendler is now optimistic about Square's ability to keep up its acceleration and continue to post better-than-expected revenue growth through 2020. "Combined with our confidence in long-run adjusted EBITDA margins (40-50%), the stock doesn't look as expensive any more," he wrote. Square shares are up 180% over the past 12 months, while the S&P 050 SPX, -0.06% has gained 15%.

https://www.marketwatch.com/story/square-stock-rises-after-buckingham-research-turns-bullish-2018-08-06

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