Mizuho gets more bullish on Square

Mizuho analyst Thomas McCrohan raised his price target on Square Inc. SQ, -4.42% shares to $61 from $50 on Friday, based on his upbeat assessment of Square's ability to grow payment volumes and generate better margins than peers. "The successful addition of new ancillary products with much higher margins than traditional payment processing informs our view that Square's margins will be on pace to exceed traditional scale players in merchant acquiring," McCrohan wrote. He points to the company's coffee-rewards program that gives Square Cash Card users $1 off coffee purchases as an example of a program that could "create habits" and get more people, particularly millennials, to use Square's consumer-facing product. Separately, an analyst at Craig Hallum Capital Group downgraded Square shares to sell, according to FactSet. They're down 2.5% in premarket trading but up 232% over the past 12 months, while the S&P 500 SPX, +0.02% is up 13%.