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Cowen analyst George Mihalos upgraded Square (SQ) to Outperform from Market Perform with a price target of $343, up from $266.

The analyst is "bullish" on the Afterpay (AFTPF) acquisition and sees the deal as accretive to Square's long-term profit growth even before revenue synergies.

Mihalos expects "levers for additional estimate upside" relative to consensus expectations for Square. The company offered "best of breed" industry growth before the acquisition and post-deal it should see Pro-forma gross profit growth over 30%, even without synergies, Mihalos tells investors in a research note.

He sees "multiple sources" of upside for Square and recommends buying the stock now.