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Pro Analysis

Square to rally by 27%, Stifel says

Jack Dorsey, CEO of Square
Louis Ascui | Fairfax Media | Getty Images
Jack Dorsey, CEO of Square

Investors should buy shares of Square as the company expands its market and benefits from the growth of electronic payments, according to Stifel Nicolaus, which raised its rating on the firm to buy from hold.

"Square has generated better than expected top-line growth despite investor concerns surrounding the competitive threats and the size of the actual addressable market," analyst Scott Devitt wrote in a note to clients Monday.

"We believe the company can continue executing on the top-line with the extension of products/services (effectively widening the TAM), continued momentum with larger merchant adoption, and ongoing tailwinds from the secular shift to electronic payments as well as the transition to EMV."