Mizuho ups Square target to $380, calls shares ‘simply undervalued’

Mizuho analyst Dan Dolev raised the firm’s price target on Square to $380 from $300 and keeps a Buy rating on the shares. Square “is simply undervalued,” Dolev tells investors in a research note. The analyst’s terminal value discounted cash flow analysis shows that by 2031, Cash App and Seller GP may exceed $30B and $6B, respectively. His base case implies a share price of $380 and his bull case implies over $650. With less than 3% penetration of a $165B total addressable market, enhanced momentum with bitcoin’s ascent, and an inflow of equity traders post-GameStop, Square is “barely scraping its full potential,” contends Dolev.