Guggenheim analyst Jeff Cantwell is bullish on Square Inc’s SQ purchase of Jay-Z’s Tidal, Barron’s reported Thursday.

What Happened: “We like Square’s deal for Tidal,” wrote Cantwell in a note, as reported by Barron’s.

“We believe adding Tidal can be significant for Square, given clear synergies between the two companies.”

Cantwell upped his price target for Square to $290 from $288 and reiterated a Buy rating on the stock of the Jack Dorsey-led company.

Why It Matters: Square purchased majority ownership in Tidal, a global music and entertainment platform, for $297 million in a cash-and-stock deal. 

Cantwell expects Tidal to ultimately bump up Square’s annual incremental revenue by $110 million by the way of the payments app getting exposed to the music and entertainment business, as per Barron’s.

The analyst reportedly sees a possibility of Square becoming a platform for payments for music lessons and other associated revenue sources related to the entertainment industry.

Tidal co-owners include artists such as Beyoncé, Rihanna, and Madonna. The 169 million-strong Instagram following of Beyoncé could unleash a “hallo effect,” noted Barron’s.

Square’s purchase of Tidal could also help popularise Blockchain, the underlying technology that powers Bitcoin BTC/USD. 

BTC traded 1.73% lower at $58,000.69 at press time.

Price Action: Square shares closed 9% lower at $224.30 on Thursday and rose 1.09% in the after-hours session to $226.75.