Square (SQ) PT Raised to $75 at Needham & Company
Needham & Company raised its price target on Square (NYSE: SQ) to $75.00 (from $65.00) while maintaining a Buy rating.
Analyst Mayank Tandon commented, "Square delivered another strong quarter, exceeding expectations on all fronts. Subscription & services revenue was the primary source of upside driven by strength from larger sellers and success in cross-selling. Take rates and transaction margins remained stable even as larger sellers continue to become a greater piece of GPV, while operating leverage drove the upside performance on adjusted EBITDA. Management raised the FY18 revenue growth outlook by 6% at the midpoint, but held the adjusted EBITDA guidance and EPS range intact to reflect higher investments. We reiterate our BUY rating on an open-ended growth story in payments and raise our target to $75."