Analyst Harshita Rawat of Bernstein maintained a Buy rating on Block, boosting the price target to $90.00.
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Harshita Rawat has given her Buy rating due to a combination of factors that highlight Block’s potential for growth and value. One of the primary reasons is the expected acceleration in Square’s Gross Payment Volume (GPV), driven by recent product enhancements and improved go-to-market strategies, particularly in international markets. Additionally, the inclusion of Block in the S&P 500 index is anticipated to attract more long-term investors, providing a significant catalyst for the stock.
Moreover, the Cash App is poised for growth with improvements in user onboarding and strategic investments in sales and marketing. The approval for Block to issue Cash App Borrow loans in more states is also expected to enhance its financial performance. Despite potential short-term increases in sales and marketing expenses, the long-term outlook remains positive due to the potential for margin expansion and operational improvements. Overall, these factors contribute to a favorable growth trajectory for Block, justifying the Buy rating.
Rawat covers the Technology sector, focusing on stocks such as Block, Fidelity National Info, and Fiserv. According to TipRanks, Rawat has an average return of 13.6% and a 63.64% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also reiterated a Buy rating on the stock with a $90.00 price target.