Nomura Instinet Boosts Square Target To $110 On B2B Debit Opportunity

Nomura Instinet analyst Dan Dolev raised his price target for Square (SQ) to $110 from $108 following the launch of Square Card, the company's free business-to-business debit card. The shares closed yesterday up $1.29 to $69.10.

The launch "kills several birds with one stone" as it taps the multi-trillion underpenetrated B2B commerce market, gets Square paid multiple times on existing gross payment volume dollars and deepens its disintermediation of banks, a concern that Fiserv's (FISV) CEO expressed just last week, Dolev tells investors in a research note. The analyst sees marginal revenue contribution from B2B debit near-term, but longer term, he believes Square has a $50B total addressable market opportunity.

The growing importance of B2B credit cards could prove to be a boon to Square, says Dolev. He keeps a Buy rating on the shares. 

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.