Two key payment processors' shares were upgraded by Wall Street analysts, with Square (SQ) - Get Report higher on the move by Bank of America and PayPal (PYPL) - Get Report wavering after the rating rise at Sanford C. Bernstein.
At last check Square's stock was trading up 3.8% to $64.94 after Bank of America analyst Jason Kupferberg lifted his rating on the San Francisco mobile-payments company to buy from neutral.
After lagging in 2019, Square shares are now priced attractively for investors seeking to add the stock to their portfolios or expand their current holdings, the BofA analyst said, according to Bloomberg.
Looking ahead, Square's first analyst day since 2017, slated for March 18, and the company's "quarterly execution," are likely catalysts for driving the stock upward, Kupferberg said.
The BofA analyst also argued that Square's revenue guidance for 2020 appears "conservative," setting up investors for a potential upside surprise.
PayPal opened at $111.50 a share, or 1.2% higher than its close Monday, after an upgrade by an analyst at Sanford C. Bernstein. The stock since then has traded gently above and below that Monday close at $110.17.
Boosting her rating on PayPal to outperform, analyst Harshita Rawat said expectations for PayPal have been "reset."
Separately, PayPal on Tuesday said it had completed its $4 billion cash acquisition of Honey Science, a provider of tools to, among other things, notify consumers when prices of products drop and which prices are the lowest available.
"The addition of Honey to our platform enables a significant step forward … to provide powerful services and tools for merchants and consumers," said Dan Schulman, president and CEO of PayPal, in a statement.