Square (SQ) - Get Report  shares eased after KeyBanc analysts slashed their price target on the payment-technology company to $75 from $100 due to near-term headwinds they expect to weigh on the stock. 

The firm affirmed its overweight rating on the stock, and the new price target is still a 27% upside from the stock's Thursday closing price of $59.03. 

Analyst Josh Beck added the company's divestiture of Caviar into his model, showing flat pro-forma margins in 2020 versus market expectations of two percentage points of expansion.

Beck's model estimates adjusted earnings before interest, taxes, depreciation and amortization of $565 million in 2020, compared with current estimates of $627 million including Caviar. 

"While sentiment may languish in the near term, which prompts a lower price target, we see increased investment as a prudent strategic move as we see two clear 2020 catalysts: improving gross-payment-volume trends and growing cash-app monetization," Beck said. 

Shares of Square were down 2% to $57.85 Friday.