William Blair analyst Andrew Jeffrey has reiterated their bullish stance on XYZ stock, giving a Buy rating on September 8.
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Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Block’s potential for significant growth. He notes that the market may be underestimating Block’s ability to achieve above-average growth in gross profit, EBITDA, free cash flow, and return on invested capital. The company’s strategic initiatives, such as enhancing its distribution channels and moving upmarket, are expected to drive accelerated growth in gross payment volume and gross profit.
Additionally, Jeffrey is optimistic about the prospects for Cash App, particularly with its integration of Borrow and buy now, pay later (BNPL) services, which are anticipated to boost user growth and monetization. The company’s innovative solutions, like Pools, and its strong unit economics are expected to help Block achieve the Rule of 40 by 2026, surpassing consensus estimates. This performance, coupled with effective go-to-market strategies and burgeoning AI solutions, is likely to lead to multiple expansion and improved long-term financial performance.
In another report released on September 8, UBS also maintained a Buy rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 118 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XYZ in relation to earlier this year.