Deutsche Bank analyst Bryan Keane raised his price target on Square Inc. shares to $57 from $47 on Friday, citing management’s plans to invest for growth on both the consumer and merchant sides of the business. On the consumer side, Keane thinks that Square is doing a good job of monetizing its peer-to-peer Square Cash app, generating revenue from more than a third of transactions. He sees Square having success in layering on “value-added solutions” like the Square Cash debit card and the ability for instant deposits. “Payroll payouts directly from the seller to an employee through Square Cash is another possible roll-out (potentially displacing check-based payouts),” Keane wrote. His recent conversations with management also left him upbeat about Square’s efforts to expand internationally. Square shares are down 5% in Friday trading after the stock was downgraded at Craig Hallum Capital Group, and they’re on pace for their worst percentage decline since February. Shares are up 217% over the past 12 months, compared with a 13% gain for the S&P 500 .
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