Square (NYSE:SQ) stock is on the rise Wednesday following an analyst upgrade from Rosenblatt.
The upgrade for SQ stock has the Rosenblatt analyst bumping it up from its previous “neutral” rating to a new “buy” rating. To go along with this, the analyst also increased the price target of Square stock from $69 to $121.
While the upgraded rating is nothing to scoff at, that new price target is a massive boost. It represents a 75.4% jump over the previous price target. It’s also roughly 15.2% higher than SQ stock’s closing price of $105.04 on Tuesday.
So why exactly does this Rosenblatt analyst have such a bullish stance on SQ stock? It all has to do with the future. They expect the company to become a “a need-to-own name for years,” due to forecasted growths in Cash App revenues over the next five years, reports Seeking Alpha.
It’s worth pointing out that this new burst of momentum for SQ stock today has it set for a new record. The stock is currently trading above $116 per share. That’s higher than the stock has ever been before and continues a ramp-up that started in late March.
Square is one of the few stocks that has benefitted from the novel coronavirus. It’s online payment services are seeing increasing use during the pandemic and that’s part of the reason its stock continues to surge higher this year.
SQ stock was up 11.3% as of Wednesday afternoon. The stock is also up 64.4% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
