What happened

For the second day in a row, shares of Square (SQ 16.13%) are on the rise. The stock rose as much as 13% in early morning trading on Thursday before settling down a bit. As of 1:15 p.m. EDT, the stock was up about 6%.

So what

Investors can thank analysts at BMO Capital and SunTrust for today's jump.

James Fotheringham, an analyst at BMO Capital, lowered his price target on Square to $67 from $78. He also maintained his market-perform rating on the company. Fotheringham noted that the company's payment volume is decelerating and there are "better investment opportunities in other financial technology stocks."

Andrew Jeffrey, an analyst at SunTrust, raised his price for Square from $55 to $70, while maintaining his buy rating. Jeffrey noted that the market has already priced in bad second-quarter results, and he believes that the company can capture market share in a recovery.

Finger hitting keyboard button that says buy

Image source: Getty Images.

What both of these price targets have in common is that they are much higher than Square's closing price on Wednesday: $52.39.

In addition, Square's stock is likely reacting positively to the news that the Senate and White House have agreed to the terms of a $2 trillion stimulus bill designed to help mitigate the economic impact of the COVID-19 pandemic.

All in all, it's understandable why shares of this beaten-down company are bouncing back again.

Now what

It is likely that 2020 won't be a great year for Square, even with the passage of the stimulus bill. More than 40% of Square's revenue is earned from consumer discretionary businesses like restaurants and small retailers, many of which are likely in crisis mode right now.

The good news: That shouldn't matter much to long-term investors. Square could be in a prime position to pick up market share in an economic recovery, especially if some of its smaller competitors don't make it through the downturn. Square's Cash App also continues to gain steam

In other words, it's not hard to understand why this growth stock continues to rally back to life.