Analyst Predicts a 59% Surge for Square Stock

Stifel's price target is still at a discount to TWTR's stock price

Jan 19, 2018 at 10:10 AM
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Jack Dorsey's portfolio is in focus today, after Square Inc (NYSE:SQ) and Twitter Inc (NYSE:TWTR) both received some bullish brokerage attention. Here's a quick look at the analyst notes issued for shares of SQ and TWTR, and how the stocks are reacting.

Nomura Instinet Eyes Another 'Phenomenal' Year for SQ

Nomura Instinet raised its price target on Square stock by $16 to $64 -- the highest on Wall Street -- amid expectations of another "phenomenal" year for the payment processor thanks to a positive inflection in gross payment value (GPV) growth. The brokerage firm also said it expects Square to be a different company in 10 years, boosted in part by increasing share gains from its sector peers.

This new Square price target represents expected upside of nearly 59% to last night's close, and has the shares up 5.2% this morning to trade at $42.38. Longer term, SQ stock has almost tripled over the past 12 months, and recently took a sharp bounce off its rising 80-day moving average following a pullback from its Nov. 24 record high of $49.56 -- a historical "buy" signal for the shares.

There's plenty of room for more analysts to upwardly revise their outlooks on SQ stock, too, considering 14 still maintain a "hold" or "strong sell" rating. Plus, the average 12-month price target of $41.29 stands at a discount to Square's current price.

Stifel Issues Lackluster Price-Target Hike for Twitter Stock

Stifel lifted its price target on Twitter stock to $21 from $17, though this still stands at a discount to Thursday's close. As such, TWTR shares have slipped 0.3% at the open to trade at $23.98.

The security has been retreating since hitting a two-year high of $25.85 on Jan. 12. However, the shares remain up 43% year-over-year, and could find a foothold at their 30-day moving average -- a trendline that has helped usher TWTR higher since late August.

And like SQ, the door is wide open for the skeptical brokerage bunch to catch up to Twitter's price action, with 83% of analysts maintaining a "hold" or worse recommendation. Additionally, the consensus 12-month price target of $21.16 sits in territory not seen since mid-December.

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