Shares of Square Inc. are up 0.9% in premarket trading Thursday after Jefferies analyst Ramsey El-Assal reiterated his positive view on the stock and cheered the company’s “subscription and services” offerings. Such products, which include instant deposits, food delivery, and small-business loans, currently make up 26% of Square’s adjusted net revenues, but El-Assal thinks they could account for about half by 2022. He predicts that instant deposits and Caviar food delivery will be among the fastest growers. “Our thesis is that as S&S becomes a larger part of the overall business, SQ should carry a higher valuation multiple,” El-Assal wrote. He maintained his buy rating and $60 price target on Square shares, and he believes “the recent pullback is a compelling buying opportunity.” Square shares fell 7.2% in Wednesday’s session alone, in the midst of the tech sell-off, marking their worst single-day percentage performance since November. The stock is up 175% over the past 12 months, compared with a 10% gain for the S&P 500 in that time.
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