Shares of fintech company Square SQ are soaring on Monday. SQ was up almost 11% in midday trading before paring back those gains a bit later in the day and closing up about 5% to $118.97.
SunTrust analyst Andrew Jeffrey boosted his price target from $83 to a Street high of $150 per share; he reiterated his Buy rating as well.
Jeffrey said he anticipates SQ to capture roughly 20% of US direct deposit accounts. He also added that the “pandemic stimulus highlights Cash App’s unique functionality,” and that it could take the place of traditional checking accounts.
The Cash App allows for direct peer-to-peer payments via mobile devices and Jeffrey sees Square eventually offering things like auto loans and consumer credit through the app.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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