It's a bit hotter than is necessary for squirrels, unless you download it a lot and use the lightest (60 gr.) bullets. It'd be a fine coyote rifle, though, especially with the 87 grain bullets.
It's kind of an in-between varmint cartridge, IMHO. Well above the .22 WMRF and .22 Hornet, but well below a .223 or one of the 6mms.