UPDATE: Goldman Sachs Starts Square (SQ) at Neutral

(Updated - July 14, 2020 4:53 AM EDT)

(updating comment)

Goldman Sachs analyst Matthew O’Neill initiates coverage on Square (NYSE: SQ) with a Neutral rating and a price target of $133.00.

The analyst comments "Following recent upgrades/estimate revisions from consensus, we believe the Street is optimistic on SQ for two reasons: (1) tailwinds for Cash App as a result of government stimulus and raised unemployment benefits programs. Consensus revenue estimates for Cash App have increased in 2Q-4Q20/2021/2022 for two primary reasons, in our view. First, with 1Q results SQ reported that the CARES Act stimulus programs helped drive an acceleration across various Cash App products during April. Second, Sensor Tower data indicates Cash App downloads increased by an average of 40% since the distribution of stimulus payments by the IRS. While we believe this supports a more positive outlook on Cash App relative to expectations heading into the year, we note the data still likely reflects a positive impact from previously mentioned government stimulus measures
and, as such, believe it is still too early to assume the significant uplift driven by the pandemic will hold longer term."

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 $118.65 yesterday.

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