Square traded up more than 1 percent Tuesday after BTIG upgraded the stock from "neutral" to "buy."
BTIG, an equity research firm, cited Square's valuation, and the potential for short-squeeze-related gains, with a new price target of $12 per share. Shares of Square traded around $9.50 Tuesday.
"We believe the stock's risk/reward is favorable at current price levels and that valuation provides a cushion against the impact of the expiration of the company's post-IPO lock-up," the BTIG note said, adding that Square will be a "show me" story. "The share price reaction to positive news is likely to be magnified by the rush by short-sellers to cover."