As Square Inc (NYSE:SQ) gears up to dish out its first quarter print for 2018 in one week, though there may be growth on a downturn in payment services, the company’s gains in non-payment services are proving to be a compelling offset from the eyes of one of Wall Street’s top performing analysts.
Top analyst Ivan Feinseth at Tigress sees a company benefiting from Business Performance trends that keep firing up thanks to rising new product revenue growth and a tech player that keeps magnetizing bigger sellers right into its “ecosystem.”
Sizing up the tech stock’s latest “pullback as a buying opportunity,” the analyst reiterates a Buy rating on SQ stock without listing a price target.
“This is a company that has utilized automation to bolster better customer service and more operating efficiency”, continues the bull, who likewise stands impressed by a business process platform that ventures past the payment by maximizing its monster customer and payer databases. Keep in mind, CEO Jack Dorsey’s company is applying to gain a bank charter to boost its lending services and capabilities.
Overall, “SQ’s strong product performance and customer retention rate continues to drive accelerating Business Performance. SQ continues to benefit from strength in its core payment business and its operating leverage. SQ’s ongoing focus on automation and integration continues to drive its growing customer base as it offers services that go beyond just the payment. SQ’s greater client onboarding automation process continues to help it 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. SQ’s innovative capabilities will continue to drive the introduction of new products that will take it beyond the payment and continue to drive growth, increasing Return on Capital, greater Economic Profit, and growing shareholder value creation. We believe further upside in the shares exists from current levels,” Feinseth surmises.
Ivan Feinseth has a very good TipRanks score with a 69% success rate and a high ranking of #125 out of 4,774 analysts. Feinseth garners 17.5% in his annual returns. Investors who follow Feinseth’s recommendations on SQ earn an average of 93.6% in profits on the stock.
TipRanks indicates mostly bulls back this tech player. Out of 26 analysts polled in the last 3 months, 15 are bullish on SQ stock, 9 remain sidelined, while 2 are bearish on the stock. With a return potential of 12%, the stock’s consensus target price stands at $50.28.