On Wednesday, Rosenblatt analyst Kenneth Hill upgraded his rating on Square to Buy from Neutral, setting a target of $121 for the stock price. Square closed at $115.90, up by 10.4%.
“Cash App potential can’t be overlooked,” Hill said in his note. Seller, Square’s core product, which is primarily marketed among merchants, “is likely to ebb and flow over the near-to-medium term, but we expect continued user uptake on the Cash App to drive further engagement,” he said.
Hill projected that revenue from the Cash App will more than triple in the next five years as the platform “gains traction as a primary spending tool.”