Analyst: these two stocks are worth owning in the payments space

Charles Nabhan initiates Block Inc and Global Payments at "overweight".
Stephens analyst sees 35% and 25% upside, in the two stocks, respectively.
Both stocks are down significantly from their recent highs in October 2021.

Stephens’ analyst Charles Nabhan remained cautious on the “payments” space at large on Wednesday, but said there still are a few stocks worth owning in this sector at present.

Nabhan sees a 35% upside in Block Inc

One of the names he likes in the payments space is Block Inc (NYSE: SQ). He initiated the stock at “overweight” this morning with a price target of $170 that represents a 35% upside from here.

Payment digitization, as per Nabhan, is a strong secular tailwind for the American company formerly known as Square Inc. In his note, the analyst said:

Global Payments initiated at ‘overweight’

Another one he recommends in this sector is Global Payments Inc (NYSE: GPN) that topped Wall Street estimates for profit and revenue in its latest reported quarter. Charles Nabhan wrote:

He assumed coverage of the stock with an “overweight” rating on Wednesday. The Stephens’ analyst says GPN could climb to $170 a share; a 25% increase in the stock price from here.