Square (SQ) Increases Its Take Rate as it Targets Restaurant Marketshare - Citi

Citi analyst Peter Christiansen reiterated a Buy rating and $80.00 price target on Square (NYSE: SQ) after the company changed merchant transaction fees from 2.75% to 2.60% + 10c per transaction. The pricing change effectively increases the take-rate for ticket sizes below ~$65 and lowers the take-rate for ticket sizes above $65.

The analyst stated "While there’s no transaction disclosures for Square, we believe Square’s average ticket is likely $30-$35 on average. Over the short-term, we would think the move actually increases Square’s overall gross take-rate. The new rates will be effective on November 1st".

For an analyst ratings summary and ratings history on Square click here. For more ratings news on Square click here.

Shares of Square closed at $57.50 yesterday.

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