Block: Compelling Valuation and Improving Execution Support Buy Rating Despite Restructuring Skepticism

Analyst Bryan Bergin of TD Cowen reiterated a Buy rating on Block, retaining the price target of $95.00.

Bryan Bergin has given his Buy rating due to a combination of factors that underscore Block’s improving fundamentals and execution. Meetings with management in Europe reinforced confidence in the company’s mid‑term framework, its ability to navigate a substantial 40% workforce reduction, and its disciplined rollout of AI and new products across Cash App and Square, all while near‑term performance appears to be tracking slightly ahead of market expectations.

Despite year‑to‑date share underperformance and lingering investor skepticism around the restructuring, Bergin views current valuation as compelling relative to fintech peers, with Block trading at modest multiples of projected 2027 earnings, EBITDA, and free cash flow. He also highlights resilient U.S. consumer trends, positive early signs from the 2025 tax refund season, and diversified funding for its lending activities, which together support Block’s status as a top pick heading into 2026 and justify maintaining the Buy rating.

In another report released on March 20, Wells Fargo also assigned a Buy rating to the stock with a $91.00 price target.