NEW YORK (TheStreet) -- Shares of Square  (SQ)  were gaining on heavy trading volume mid-morning Wednesday as Credit Suisse raised its stock rating to "outperform" from "neutral" after the payments processing company late yesterday reported better-than-expected 2016 fiscal third-quarter results and raised its full-year guidance. 

The firm also increased its price target to $15 from $12 on shares of San Francisco-based Square. 

After yesterday's closing bell, Square reported a loss of 9 cents per share, narrower than analysts' projections for a loss of 11 cents per share. Revenue increased 32% year-over-year to $439 million, beating Wall Street's estimates of $431 million. 

For 2016, Square now expects to post revenue in the range of $1.695 billion and $1.700 billion, up from between $1.630 billion and $1.670 billion. 

Square's "solid" third-quarter results showed higher top line growth and better leverage, Credit Suisse noted. 

"We continue to like Square for its exposure to strong secular tailwinds including not only payments electronification, but payments simplification," the firm said in an analyst note. "We believe Square's years of product investment and brand building put it ahead of the competition for integrated small business payments solutions..."

Credit Suisse added that it expects the company can sustain 20% to mid-30% volume growth in the mid-term. 

More than 3.38 million of the company's shares changed hands so far today vs. its average 30-day volume of 2.88 million shares per day.

SQ Chart SQ data by YCharts

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