According to Devitt, Noto's departure will cause Jack Dorsey, who currently holds CEO positions at both Twitter and Square, to spend more time at Twitter and less at Square. As a result, Friar could have more management responsibilities at Square.
"It is likely that the events at Twitter will lead to a broad reassessment of Jack Dorsey's overall time spent and the possible elevation of certain deserving Square executives," Devitt wrote in the note. Friar "would seem to be the most logical Square executive beneficiary of Noto's departure from Twitter," he added.
Friar, a long time Goldman Sachs analyst, joined Square in 2012 and played a key role leading the company through its 2015 IPO process. Devitt notes that Friar's role has been "almost heroic" at Square and was the "key ingredient" in its success in the public market.
Square has been one of the hottest stocks in tech, roughly tripling in value over the past year. Its stock went up about 2 percent after Stifel's note was published.