Block’s stock is on the rise following the optimistic views of two analysts who see potential for growth in the payment company.
BTIG Analyst Upgrades Block to Buy
BTIG analyst Andrew Harte has upgraded shares of Block from Neutral to Buy. He has also set a price target of $85 for the stock. While Block’s shares had experienced a 14% decline over the past year, Harte remains positive about the company’s prospects.
In his research note, Harte emphasizes the attractive position that Block holds between consumers and merchants. He highlights the strength of Block’s Cash App and Square ecosystems and anticipates even greater synergy between these two segments.
Wedbush Analyst Raises Rating to Outperform
Another analyst, Moshe Katri from Wedbush, has also increased his rating on Block’s stock. He has upgraded it from Neutral to Outperform and has raised his price target from $70 to $90.
Katri points out that Block’s decision to run the company with strict financial discipline and focus on GAAP earnings is a positive development. Additionally, he sees the potential for accelerated growth in the merchant segment as a key driver for the stock’s performance.
Block’s Focus on Balance between Growth and Profitability
During Block’s third-quarter earnings call in November, Chief Financial Officer Amrita Ahuja highlighted the company’s commitment to achieving a balance between growth and profitability. She mentioned their renewed focus on efficiency, disciplined expenses, and critical thinking to drive leverage.
Positive Performance and Industry Comparison
On Monday, Block’s shares experienced a 1.7% increase, reaching $70.13. In comparison, competitor PayPal Holdings saw a 0.9% decline, while Intuit was down by 0.4%.
Overall, with these positive assessments from analysts and a strategic focus on growth and profitability, Block is poised for success in the payment industry.
