Credit Suisse upgraded Square (NYSE: SQ) from Neutral to Outperform with a price target of $15.00 (from $12.00) following results.

Analyst Paul Condra commented, "Our Neutral initiation was based on our view that despite solid fundamentals, we weren’t comfortable with a higher valuation for the stock. However, following 3Q16’s solid result, we are increasing our forecasts to reflect higher top line growth and better leverage, and believe we can now comfortably justify a $15 price target for the stock with no change to our multiple assumptions or valuation methodology."

The firm is raising raising 2016E EBITDA to $19m from $15m, 2017E to $128m (14% margin) from $84m (10% margin); and 2018E to $214m (18% margin) from $148m (13% margin). They forecast 23% EBITDA margins by 2020.

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 $11.07 yesterday.