Square price target raised to $75 from $43 at Morgan Stanley
Morgan Stanley analyst James Faucette said Square's new product introductions and ramp up in revenue points to a sustainable advantage in data collection and analytics that can be levered into new products that he previously thought were not feasible. He also said his meetings in Washington, D.C. lead him to believe the odds that Square is granted Industrial Loan Company status by the FDIC as better than he had previously anticipated. Given those two views, and the fact that some large banks are going through a culture shift that discourages cross-sell of U.S. merchant acquiring, he sees good potential for upward estimate revisions for Square in the near-term and raised his price target on the stock to $75 from $43. However, Faucette keeps an Equal Weight rating on Square, calling its valuation "demanding" and citing his continued view that new services are misvalued.