Square stock price has gained investors’ attention amid consumers and corporates move towards digital payment networks following a pandemic. Staying at home policies and banking restrictions added to users move toward online payment platforms.
Square stock price has been setting a new record over the past couple of weeks. Its share price rallied almost 120% in the last three months alone after bottoming around $40 level in March. Its shares are up 80% year to date and the stock price jumped 50% in the past twelve months. It’s market capitalization, which is currently hovering at a new record level of $50bn, doubled since May this year.
Despite the recent rally, analysts are seeing further upside for Square stock due to the increasing popularity of its Cash App. For instance, SunTrust analyst Andrew Jeffrey provided a price target of $150 compared to the previous target of $83 as the analyst expects Square to capture close to 20% of U.S. direct deposit accounts from banks.
“Pandemic stimulus highlights Cash App’s unique functionality,” SunTrust analyst Andrew Jeffrey said, adding that the Cash App may outplace traditional checking accounts.
The market analysts have also been expecting substantial growth in financial numbers for the second quarter. Its May retail sales numbers jumped nearly 18% month on month and the company has added a large number of new accounts in April.
Its first-quarter revenue grew 43% from the past year period while the management expects more acceleration in the second-quarter numbers. The analysts claim that Square is well set to enhance its market share in the online payments sphere.
“With an estimated addressable market worth $160 billion and growing, the company is well-positioned for sustained expansion in the years ahead,” The Data-Driven Investors analyst Andres Cardenal said.