Square’s (SQ) great year just got better. Yesterday, the company was announced as Yahoo Finance’s Company of the Year, an award which – although having no bearing on its valuable – is a testament to its business prowess and success over the past 12 months. Square’s shares are up nearly 70% for the year, as the company has released a slew of new products including Terminal, an updated Reader and Register, which was released last October.
Feinseth says that Square is benefiting “from growing gross payment volume and its expanding customer base” which is primarily a result of growth from new and existing product lines. The analyst adds that its onboarding process is helping “increase the reach of its financial systems to more clients as it scales up its own operations, and further helps sellers with advanced CRM and business management tools.”
Besides from product and software, Feinseth is impressed by Square’s growth in its subscription and services business, including Caviar, Cash Card and Square Capital. Year-over-year, revenue from this category increased 155%, while Square Capital loan volume increased 34%.
Square is continuing to position itself as a business processing company, not only a payments processing company. Feinseth says, Square “employs a technology-focused approach that enables it to develop products and services to help its customers grow and expand their businesses by providing application-based services for SQ’s sellers to manage their resources better,” which the analyst believes will “continue to evolve as [Square’s] key growth driver.”
Overall, TipRanks analysis of 30 analyst ratings on the company shows a consensus Moderate Buy, with 16 analysts recommending Buy, 12 recommending Hold and two recommending Sell. The average price target is $88.42, representing a 48% upside from its current level; however, the most bullish analyst goes as high as $115, while the most bearish expects the company to plunge to $30. (See Square’s price targets and analyst ratings on TipRanks)