Square to rally 25% on its 'best-in-class' product and brand, analyst says

Traders work the floor of the New York Stock Exchange.
Yana Paskova | Bloomberg | Getty Images

Investors should buy Square shares on the growth potential of its payments offering in the coming years, according to Instinet, which initiated coverage on the company with a buy rating.

"The integrated payments sector is thriving, and Square is a consistent share gainer that benefits from a best-in-class product, strong brand, and high visibility in a largely commoditized merchant acquiring space," analyst Dan Dolev wrote in a note to clients Monday.