Square stock falls but Stifel turns bullish
Stifel analyst Scott Devitt upgraded Square Inc.’s stock to buy from hold on Thursday, after the company reported a better-than-expected quarter but showed heightened spending. Shares are down 5.7% in premarket trading. “We strongly support Square’s decision to reinvest in key strategic areas as we believe this will ultimately support higher levels of growth over the long term and effectively widen its competitive position,” Devitt wrote. He said that Square is having success in its efforts to pick up larger sellers, while its subscription and services business nearly doubled during the quarter. Devitt also highlighted the company’s recently announced acquisition of Weebly, a website-creation platform. “Management believes the acquisition will allow the companies to accelerate the integration of both platforms and provide sellers with stronger omnichannel capabilities,” he wrote. Devitt raised his price target to $55 from $46. Square shares are up 166% over the past 12 months, while the S&P 500 is up 10%.