Analyst Price Target For Square Presents The Case For Limited Upside After Thursday's Spike

Square Inc (NYSE: SQ), the payment processing and financial market services company, saw its shares spike higher by 8 percent on Thursday to close the trading session at $11.31 as investors found its second-quarter results to be encouraging.

Square reported a loss of $0.09 per share in its second quarter on revenue of $438.53 million. Wall Street analysts were expecting the company to lose $0.11 per share on revenue of $405.71 million.

Square's top- and bottom-line earnings beat proved to be sufficient to drive Square's stock higher in the near term, but concerns over the longer-term outlook remain. One of the main overhangs on the stock is the fact that the company's CEO Jack Dorsey splits his time between running Square and Twitter Inc (NYSE: TWTR) where he also holds the CEO title.

Related Link: How's The Jack Dorsey Trade Playing Out This Year?

Wall Street analysts collectively reinforced the case against Square's stock, at least for the time being. While a few analysts did raise their rating and outlook on Square, the average price target among analysts is $11.86, which is below Thursday's intra-day high of $12.28 and implies minimal upside from Thursday's closing price.

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At time of writing, Square was up 0.71 percent at $11.40 in Friday's pre-market session.

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