Here’s Why This Top Analyst Just Boosted His Price Target for Square (SQ) Stock


RBC Capital’s top analyst Daniel Perlin is out today with a bullish research note on shares of Square (NYSE:SQ), after hosting a meeting with the company’s CFO Sarah Friar and IR team. Three key takeaways from the meeting include: 1) Cash App continues to illustrate the company’s skill set in iterating new products to open up additional TAM, 2) Square for Restaurants creates a new avenue for Square Capital growth, while also cohesively pulling in Caviar, and 3) its real-time risk engine is the secret sauce to delivering speed in many of its products.

“This meeting increases our confidence in our estimates for a total addressable market (TAM) for SQ in 2026. Based on this TAM framework,” Perlin said while reiterating an Outperform rating on SQ and raising the price target to $95 (from $82), which implies a potential upside of 7% from where the stock is currently trading. (To watch Pelin’s track record, click here)

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Daniel Perlin has a yearly average return of 30.1% and a 90% success rate. Perlin has a 126.4% average return when recommending SQ, and is ranked #34 out of 4874 analysts.

Net net, SQ has a cautiously optimistic Moderate Buy consensus rating from the Street. This breaks down into 12 Buy, 13 Hold and 1 Sell ratings in the last three months. However, we can also see that the average analyst price target is $73.59, which represents a 16% downside from current levels. (See SQ’s price targets and analyst ratings on TipRanks.)

 

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