Deutsche Bank Upgrades Square (SQ) to Buy

December 2, 2016 6:49 AM EST
Get Alerts SQ Hot Sheet
Price: $77.95 --0%

Rating Summary:
    41 Buy, 13 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 20 | New: 10
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Deutsche Bank upgraded Square (NYSE: SQ) from Hold to Buy with a price target of $17. Analyst Bryan Keane thinks its model is underappreciated.

"We believe SQ’s business model is underappreciated by the street and is well positioned to capitalize on many positive trends in the industry including the growth in micro and small business, electronic payments and the industry move towards integrated solutions. SQ owns its own platform giving it the ability to efficiently gain and retain clients better than industry peers (high retention, low churn creates moat around business). SQ is currently at an important inflection point as it turns towards profitability while maintaining industry leading growth rates. We believe SQ’s current 4Q16 guidance and street FY17 and FY18 estimates could prove conservative. Trading at just 3.5x CY18 EV/ Adj. Sales, we believe SQ is currently mispriced and believe 5x EV/ Adj. Sales on CY18 estimates is more appropriate given peer group valuations with similar growth profiles," said Keane.

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 $12.71 yesterday.



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