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