Shares of Square climbed 9% Thursday following the company’s stronger-than-expected earnings report, which prompted a number of price target increases from analysts covering the stock. Canaccord Genuity increased its price target on the stock by two dollars to $18, citing expectations that the company’s momentum will continue. Shares of Square traded around $19.87 in afternoon trade. They’ve gained 39% in the past three months and 48% in the past year, vastly outperforming the S&P 500 , which is up 4% and 16%, respectively. Despite a number of other price target increases, the average target on the stock is just $19.81, which implies a decline from current trading prices, according to a FactSet survey of two-dozen analysts. Canaccord said a “lack of near-term profit support for the valuation” may cause stock volatility. CFRA Research analyst Scott Kessler downgraded the stock to hold from buy, and reduced his price target by a dollar to $21.
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