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Fly News Breaks for June 7, 2019
SQ
Jun 7, 2019 | 07:10 EDT
Shares of Square have languished recently as investors search for the next big revenue generator, JPMorgan analyst Tien-tsin Huang tells investors in a research note. The analyst believes Square Card "could be an answer." Square's business debit card issued to sellers that provides immediate access to their Square balance is "more lucrative and higher quality than Instant Deposit," Huang contends. He thinks Square Card adoption could grow faster, cannibalizing some business Instant Deposit volume, while generating higher revenue yields. The analyst sees Square Card exiting 2020 at a $10B and $240M annualized purchase volume and revenue rate, respectively. Huang likes Square shares at current levels and keeps an Overweight rating on the name with an $86 price target.