Square takes off as Raymond James abandons bearish outlook By Investing.com

Investing.com – Square (NYSE 🙂 jumped on Tuesday after Raymond James revised up its outlook on the stock, giving up its downside outlook on the payout company, citing a more balanced risk-return profile.

Raymond James has upgraded its rating on Square (NYSE 🙂 to stand out underperforming performance, increasing the value of its shares by more than 6%. The stock is up about 40% this year.

The positive growth of the brokerage sector was a turning point compared to its bearish outlook earlier in the year, when it degraded Square (NYSE 🙂 to underperform, predicting a lack of growth opportunities for the company. financial technology.

But the headwinds that society faces are now being generated by Square's shares, which are trading under its peers.

"There is concern that the magnitude of the highlights is likely to decline, and most importantly, the slowdown in organic growth in the second quarter might surprise some investors," said Raymond James. But after the company's lowest turnover at 1Q, a guide 2Q below expectations and a margin rate now well telegraphed, the negative catalysts have mostly played and the title has fallen behind its peers . "

The brokerage also praised the company's offering of business credit cards, which "was gaining popularity" and could give enough momentum to exceed expectations in the second half of the year.

Raymond James is not alone in hiring the company's B2B vendor card offering. JPMorgan (NYSE 🙂 said last month, Square (NYSE 🙂 could continue to generate the growth needed to maintain its high valuation partly thanks to its professional debit card.

The card allows businesses immediate access to its turnover, without waiting for a bank transfer.

The card allows businesses to immediately access its turnover without having to wait for a bank transfer.