New Street Research - Square Inc. Class A (SQ) SQ US (Neutral, TP: $70, +15%) Block INITIATION: Spin the Wheels

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New Street Research

Soomit Datta

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SQ US (Neutral, TP: $70, +15%) Block INITIATION: Spin the Wheels

There’s a path to strategic success for Block and, if anyone can find it, it’s probably returned co-founder Jack Dorsey. He needs to fix operational issues at Square, reversing share losses, and seek out merchant growth. This should enable a more balanced 2-sided ecosystem with Cash App, providing additional utility for consumers. Cash App otherwise risks becoming “just another” wallet. Structural headwinds include: likely instant deposit declines and a more resurgent Venmo.

09/09/2024 1 EN

Underlying

Square Inc. Class A

Square is a commerce ecosystem that combines software with hardware to enable sellers to turn mobile devices and computing devices into payment and point-of-sale solutions. With the company's offering, a seller can accept payments via magnetic stripe, Europay, MasterCard, and Visa, or Near Field Communication; or online via Square Invoices, Square Virtual Terminal, or the seller's website or app. Also, sellers can gain access to reporting and analytics, next-day settlements, digital receipts, payment dispute and chargeback management, security, and Payment Card Industry compliance. The company's Cash App enable individuals to send and receive money electronically to and from individuals and businesses.

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US8522341036 New York Stock Exchange United States

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Analysts

Soomit Datta

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SQ US (Neutral, TP: $70, +15%) Block INITIATION: Spin the Wheels

SQ US (Neutral, TP: $70, -5%) Block Q3 24 - Solid quarter, signs of Square GPV revival key to FY 25 success

Block Inc: 3 directors

PYPL US (BUY, TP: $85, +24%) ADYEN (BUY, TP: EUR1,700) SQ US (Neutral, TP: $70) Real Time Payments: Risks for Visa/Mastercard, implications for PSPs - Global learnings

Alphabet (GOOGL, Buy, $213 target) Forget Chrome, 3P payments are the heart of the issue

SATS: DBS merger breaks

3Q24 Broadband Trends: FWA capacity limits; FWA demand limits

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