Square upgraded to Buy from Neutral at Citi
Citi analyst Peter Christiansen upgraded Square to Buy from Neutral and raised his price target for the shares to $90 from $67. The stock closed yesterday down $2.75 to $75.01.In addition to "robust" user acquisition spending, Square's planned ~35% headquarter expansion signals confidence in continued platform growth, Christiansen tells investors in a research note. Further, he believes upcoming Q3 commentary on the overall health of the ecosystem, visibility into fiscal 2019, and progress on the CFO search "will be positive towards restoring momentum in the stock." The analyst adds that he has no reason to believe Square's CFO departure relates to a negative change in the company's forward prospects. After a deeper look into Square's investment spending/payback model, Christiansen lifted his 2019 adjusted revenue estimate by 8%, or 9 points above consensus expectations for 42% growth.