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Maybe it’s time to start spelling “FANG” with an “S.”

That, Nomura Instinet analyst Dan Dolev wrote Tuesday, is because payments company Square (SQ) belongs in the category of stocks that currently includes Facebook (FB), Apple (AAPL) and Amazon.com (AMZN), Netflix (NFLX) and Alphabet (GOOGL). Those are the fast-growing companies—digital-era businesses that have become shorthand for disruption—known as the FANG, or FAANG, stocks.

“Similar to FANG stocks that have disrupted traditional markets with massive global total addressable markets, Square’s fully cohesive solutions and rapid rate of innovation suggest that it is en route to disrupt the global payments ecosystem.”

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Square, part of the Barron’s Next 50 index, has already had a strong 2018. Its shares are up nearly 150%, with CEO Jack Dorsey winning praise for his dual rules heading both Square and Twitter (TWTR). They were up more than 3% Thursday morning.

Dolev believes there’s more ahead: He’s placed a $125 share price target, 40% above current levels and the highest on Wall Street according to FactSet, on the stock.

Given the shares’ run this year, Dolev argues that the shares only look richly valued—but aren’t, when compared with peers, based on its estimates of coming revenue growth. (His revenue estimate for 2018 is only somewhat ahead of the Street’s consensus, but he’s more aggressive through 2021.)

Nomura Instinet

”Is Square too expensive? Not when taking into account its stellar 45% expected three-year revenue compounded average growth rate,” he wrote. By that measure, he argues, it’s a relative value when compared with both payment stocks—including PayPal (PYPL)—and FANG companies Alphabet, Facebook and Netflix.

Dolev is pretty far out in front of the Street’s consensus: FactSet’s mean price target is currently below $80, and his own previous target was $86. (And in July, it was only $82.) On Tuesday, Jefferies’ John Hecht raised his own target from $63 to $88.

“We believe the shares are fairly valued and reflect a balance of both opportunity and risk,” Hecht wrote. “While we consider Square a well-positioned company with strong execution skills, we believe this is adequately priced into the stock.”

Email David Marino-Nachison at david.marino-nachison@barrons.com. Follow him at @marinonachison and follow Barron’s Next at @barronsnext.