By Christiana Sciaudone
Investing.com -- Follow the cash.
Square Inc (NYSE:SQ) is up 5% after Susquehanna analyst Jamie Friedman bumped its price target on the stock to $195 from $180, citing fast growth of Square Cash compared to pre-Covid times. The analyst reiterated a positive rating on the company.
Shares of the mobile payments company have soared 185% in 2020. They are currently trading around $177.74.
Record-high debit usage disclosed by the networks should help even if Square Cash is off its stimulus-driven highs, Friedman said, according to StreetInsider.
"We forecast Cash gross profit growth of 174%," Friedman wrote in a note. "This is driven by ~150% growth in Subscript & Service revenues and added by transaction revenues in-line with LQ. We assume Bitcoin revenues and expenses net out to zero."
Square has 15 buy ratings, 10 holds and two sells.