Square and PayPal climb higher on bullish analysts’ rating
PayPal rose 1.88% to $ 160.51 per share, while Square’s share price climbed 4.85% to $ 95.41 per share, after Guggenheim analyst Jeff Cantwell, called on fintechs for playing a leading role in channeling much-needed federal loans to underbanked small and medium businesses. companies.
Square and PayPal have become the main players in ensuring that money gets to these traditionally underserved businesses, Cantwell wrote.
Both credit card processing and mobile payment companies “help a large – and underserved – segment of the economy,” Cantwell said, according to Bloomberg.
Square reported that it has helped funnel more than $ 820 million in Paycheck Protection Act payments to more than 76,000 businesses, while PayPal CEO Dan Schulman credited the company, in remarks during a conference, for helping to grant more than 60,000 PPP loans. service reports.
“It’s a race to save jobs for now and for the future,” said Schulman, CEO of PayPal, in late April announcing his company’s participation in the federal government’s PPP loan initiative. “We look forward to deploying our capital and expertise to help help small businesses survive these difficult times.”
The federal government should require fintechs to be automatically included in the lender pool for future efforts to help small businesses, Cantwell argues.
Meanwhile, Citi analyst Peter Christiansen raised his price target on Square to $ 95 per share, from $ 66 previously.