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Shares of Square Inc(NYSE: SQ) have lost nearly 9 percent since its IPO in late November.
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Analysts at several Wall Street firms initiated coverage of Square on Monday.
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The bearish-themed notes pointed out that Square's future growth is already priced into the stock while the bullish research highlighted the company's attractive growth profile and large market.
Square's stock has lost nearly 9 percent since its IPO debut in late November. Here's what new analysts are saying after they initiated coverage this Monday.
Morgan Stanley: Valuation Concerns
Vasundhara Govil of Morgan Stanley initiated coverage of Square with an Equal weight rating and $12 price target.
According to Govil, Square has "revolutionized" and "disrupted" the payments space given its "compelling value offer" to micro and small merchants, future growth is already priced in to the current valuation.
According to Govil, Square is well positioned to further monetize its two million users and cross-sell software and other relevant non-payment services. The analyst noted that this represents a "much larger addressable market" versus payment processing and the company's non-payment revenue base is "still small" and visibility into improvements is "low."
Govil also added that Square's long-term margin outlook is "uncertain." As such, the analyst recommended investors stick to the sidelines.
Shares were initiated with an Equal weight rating and $12 price target.
Related Link: Square Has Lost 52% Of Value In Past Year
JPMorgan: ‘Intangibles To Disrupt'
Tien-tsin Huang of JPMorgan initiated coverage of Square with an Overweight rating and $14 price target.
According to Huang, Square is a "bona fide growth company" that can grow twice as fast versus the next fastest public
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