PayPal, Block rated Overweight as Wells Fargo reinstates payment stock coverage

Apr. 05, 2022 8:41 AM ETPayPal Holdings, Inc. (PYPL), SQPAY, WEX, BILL, FIS, FISV, FLT, ADYEY, ADYYF, TOST, MQ, PAGS, STNE, F, FNFBy: Liz Kiesche, SA News Editor17 Comments

Woman paying contactless with smart watch for shopping delivery.

VioletaStoimenova/E+ via Getty Images

  • Wells Fargo analyst Jeff Cantwell assigned Overweight ratings to Block (NYSE:SQ) and PayPal Holdings (NASDAQ:PYPL) in reinstating a number of payment stocks.
  • Block (SQ) is a "unique disruptor", and "we believe sustained share gains by its Square and Cash App businesses will drive strong firmwide gross profit growth in coming periods," the analyst wrote in a note dated April 4.
  • As for PayPal (PYPL), its numerous growth initiatives should "support ongoing improvement in the company's financial performance in '22/'23," Cantwell said. Those include: maintaining and building share in online checkout; boosting engagement in its digital wallet; expanding Venmo into commerce; expanding in-store; and focusing on international growth opportunities.
  • Paymentus (PAY), Wex (WEX), (BILL), Fidelity National Information Services (FIS), Fiserv (FISV), and Fleetcor (FLT) were also reinstated at Overweight.
  • Adyen (OTCPK:ADYEY) (OTCPK:ADYYF), Toast (TOST), and Marqeta (MQ) were initiated at Overweight.
  • PagSeguro (PAGS) and StoneCo (STNE) received new Equal-Weight ratings.
  • On Monday, KeyBanc Capital Markets analyst Josh Beck raised Block's (SQ) price target to $180.

Recommended For You

Comments (17)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.