Square shares are up 146% in 2020 so far, and analysts at Oppenheimer think the stock can still go higher.
On Thursday, Oppenheimer upgraded Square (SQ) to outperform, with a price target of $185. (The all-time high was $166 on Sept. 1; shares were trading at around $152 on Thursday afternoon.) The upgrade is based on the growth of Square’s Cash App, and on the company’s opportunity to help merchants transition to e-commerce.
But really, the note is a post-pandemic vote of confidence.
As Oppenheimer writes, the COVID-19 pandemic has initiated a “massive shift in digital commerce, requiring merchants to rapidly adopt omni-channel solutions.” Of course, it was already obvious before the pandemic that the retail landscape was barreling toward e-commerce, but the pandemic has sent the trend into hyperdrive. Walmart, Target, and Best Buy reported enormous surges (100%+) in digital sales in Q2; online-only retailers Etsy and Wayfair blew