The Square stock price rebounded on Thursday as investors reflected on a relatively bullish call by analysts at Jefferies. The stock jumped by more than 4% and ended the day at $250, which was about 13% above the weekly low.
Analysts are bullish on Square
Square is one of the biggest fintech companies in the world. The firm, which is headed by Twitter’s CEO, has a total market capitalization of more than $114 billion.
The company offers a different suite of products such as PoS and CashApp, one of the fastest-growing peer-to-peer payment solutions in the US. Cash App also enables people to buy Bitcoin and other digital currencies.
The company also offers online payment processing solutions. And soon, it will move into the buy now, pay later business through its acquisition of AfterPay.
Square is also building a super-app that will bundle several financial services in one app. PayPal is also building a similar service.
Analysts are generally bullish about Square. In a note on Thursday, an analyst at Jefferies said that he was bullish on the stock. He expects that the company’s stock will keep rising to about $300, which is more than 20% above the current level.
Other analysts have similar opinions about the Square stock price. For example, analysts at Evercore expect that the stock will rise about $371 while those at JP Morgan expect that the shares will rise to $320. Those at Barclays, Truist, Royal Bank of Canada (RBC), and Cannacord Genuity expect the shares will rise to more than $300.
Square will publish its third-quarter results in November. Analysts expect the results to show that the company’s revenue increased to more than $4.56 billion while its earnings per share rose to $0.37. Still, the company will likely publish better results since it tends to beat the consensus most times.
Square stock price forecast
The daily chart shows that the Square stock price has found a strong resistance at the $277 resistance level. The stock has also been in a consolidation mode in the past few sessions. As a result, it is trading along the 25-day and 50-day moving averages (MA). The Average True Range (ATR), which is a good measure of volatility, has also declined slightly.
Therefore, the stock will likely remain steady at the current range. A bullish breakout will be confirmed if it manages to rise above the key resistance at $277. If this happens, the next key resistance level to watch will be at $300.
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