Analysts rate Square Inc.(SQ:NYE) with a Strong Buy, $214 Target

STA Research
by: STA Research
Block Inc.

Analysts rate Square Inc. with a consensus Strong Buy rating and a 12-month average Target price of $214.41 per share.

Mizuho Securities maintained the rating on Square Inc. with a Buy rating, and reduced the 12 month target from $210 to $180 on the payment company’s stock price.

Based on the Square Inc. stock forecasts from 29 analysts, the average analyst target price for Square Inc. is USD 214.41 over the next 12 months. Square Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Square Inc. is Neutral, which is based on 6 positive signals and 6 negative signals. At the last closing, Square Inc.’s stock price was USD 101.93. Square Inc.’s stock price has changed by -4.59% over the past week, -5.95% over the past month and -57.90% over the last year.

Block, Inc., together with its subsidiaries, creates tools that enable sellers to accept card payments and provide reporting and analytics, and next-day settlement. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in San Francisco, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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