Market Overview

KeyBanc Remains Bullish On Square On Potential Seller Investment

KeyBanc Remains Bullish On Square On Potential Seller Investment

Square Inc (NYSE: SQ) is potentially undertaking seller investment initiatives, which could result in an improvement in gross present value (GPV) in the second half of 2020 and lead to stable GPV growth with a payback period of five to six quarters, according to KeyBanc Capital Markets.

The Analyst

KeyBanc’s Josh Beck maintained an Overweight rating on Square with a price target of $75.

The Thesis

Although Square’s planned seller investments have raised concerns around the total available market and competition, recent checks do not indicate notable impact on the competitive environment, Beck said in the note.

He added that GPV trends would likely be followed very closely, given the uncertainty around pricing.

If increased sales and marketing investment attracts new sellers with efficient payback periods, it could curb the ongoing GPV deceleration and this parameter could stabilize or begin improving in the back half of 2020, the analyst said.

“While NT trends are likely to feed into the bear case on decelerating GPV and increased investment,” the growth rate and opportunity for the Consumer and Cash App segments would become “better understood” once the GPV begins improving, Beck wrote.

Price Action

Shares of Square had declined slightly to $62.55 at the time of publishing on Monday.

Related Links:

Cramer Weighs In On Yeti, Square And More

9 Technology Stocks Moving In Thursday's Pre-Market Session

Latest Ratings for SQ

Dec 2020Evercore ISI GroupUpgradesIn-LineOutperform
Dec 2020NeedhamMaintainsBuy
Nov 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for SQ
View the Latest Analyst Ratings


Related Articles (SQ)

View Comments and Join the Discussion!

Posted-In: Josh Beck KeyBanc Capital MarketsAnalyst Color Reiteration Analyst Ratings

Latest Ratings

ESTCCanaccord GenuityMaintains150.0
AVAVCanaccord GenuityMaintains98.0
OKTACanaccord GenuityMaintains250.0
SNOWCanaccord GenuityMaintains275.0
RCMSVB LeerinkMaintains26.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at