- Wells Fargo analyst Jeff Cantwell launched global coverage of the payments and fintech sector with a bullish stance.
- He saw a $1.5 trillion annual revenue opportunity for fintech companies globally and expects 6% annual growth over the coming decade.
- Cantwell insider Shopify Inc. (NYSE: SHOP) with an overweight rating and a price target of $834 (up 18.2%).
- After the recent pullback, he sees the valuation as “more acceptable” for Shopify, which he expects to grow GMV rapidly in FY22 and FY23 with concurrent strong revenue growth.
- Ongoing launches of value-added products and services highlight a crucial theme, vendor consolidation, which he believes will drive sustainable market share gains.
- Cantwell insider PayPal Holdings Inc. (NASDAQ: PYPL) with an overweight rating and a price target of $152 (up 27.9%).
- PayPal is the leader in payments currently trading at a “reasonable post-reset multiple”.
- The stock reset is overblown as the company has “tailwinds” across its platforms, producing strong growth after eBay’s run-in sent shares soaring.
- Cantwell insider Block Inc. (NYSE: SQ) with an overweight rating and a price target of $165 (up 19.7%).
- It saw Block gain a share in its Square and Cash App businesses, with the upcoming Investor Day in May as a potential catalyst.
- He is also interested in Block’s long-term crypto aspirations.
- Price action: Shares of SHOP traded down 3.72% to $700.25 when last checked on Tuesday.
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| Dated | Solidify | action | From | For |
|---|---|---|---|---|
| February 2022 | Morgan Stanley | Maintains | Equal weight | |
| February 2022 | Swiss credit | Maintains | Neutral | |
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