Jack Dorsey's Top Priorities For Square

Stifel analyst Scott Devitt increased his target price for Square Inc SQ from $21 to $23 and reiterated the mobile payments company at Buy after an analysts meeting with founder and CEO Jack Dorsey, Square’s first such meeting as a public company.

Areas Of Focus

“We come away with greater confidence in Square’s ability to execute against the long-term growth opportunities based on commentary on investments, growth strategy, and the product ecosystem,” Devitt wrote.

Square was trading $19.90 on Wednesday.

Related link: Square Continues To Prove Itself, One Quarter At A Time

Devitt said Dorsey, the CEO and co-founder of Twitter Inc TWTR, outlined three areas of focus during the meeting Tuesday in San Francisco:

1. Integration: making Square’s services such as Capital, Caviar, payroll, ecommerce work together more cohesively.
2. Automation: making services such as on-boarding and customer support (ability to offer predicative support in the Dashboard) more self-serve through machine learning.
3. Platform: making services more modular.

“Square highlighted that the company currently captures less than 3 percent share of the $26 billion U.S. payments adjusted revenue opportunity,” Devitt wrote. “The company estimated the total addressable market of its entire commerce ecosystem (U.S. payments, eCommerce, software, Square Capital, and Caviar) is over $60 billion.”

He said Square believes it can effectively broaden its addressable market by applying its proven U.S. playbook to further international expansion.

Image Credit: By (CC) Brian Solis, www.briansolis.com / bub.blicio.us, CC BY 2.0, via Wikimedia Commons