Square (SQ) PT Lowered to $90 at Needham & Company

Needham & Company analyst Mayank Tandon lowered the price target on Square (NYSE: SQ) to $90.00 (from $95.00) while maintaining a Buy rating.

The analyst commented, "SQ kicked off FY19 with a bang, exceeding high expectations on the top and bottom line. Of note, the company reported organic adjusted revenue growth of 49% Y/Y, demonstrating once again that SQ's combination of a strong core payments offering and supporting products continues to have a long runway for growth with SQ entrenching itself as a one-stop shop for its merchants. We believe the after-hours pull-back in the shares is due to increased investments for growth, which results in modest margin compression in our estimates. However, we believe the company's momentum remains strong as the company continues to enhance its ecosystem offerings for SMBs and consumers. We reiterate our BUY rating but trim our target to $90 for an open ended growth story in payments."

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