- Mizuho analyst Dan Dolev reiterated a Buy rating on Block Inc (NYSE:SQ) with a $210 (105% upside) price target after Apple Inc (NASDAQ:AAPL) introduced Tap to Pay on the iPhone.
- The analyst views Apple's near-field communication move as potentially more long-term benefits for Block.
- Tap To Pay could further proliferate Block's two-sided commerce ecosystem on a broader and more global basis, Dolev notes.
- Related Content: Apple Fires Up Square Rivalry With Latest Feature
- He sees potential for Apple helping to broaden the use and appeal of Block's software.
- He believes the adverse stock reaction suggests investors are misinterpreting that Block is the main target for Apple.
- Instead, opening up the Apple hardware can benefit the merchant acquirers with the best brand and lead with software like Block's Square, contends Dolev.
- The analyst thinks pure-play hardware providers, such as Ingenico or Verifone, could be more challenged by Apple's Tap to Pay.
- Price Action: SQ shares traded higher by 1.48% at $103.80 in the premarket session on the last check Wednesday.
