UBS analyst Timothy Chiodo reiterated a Buy rating on Block yesterday and set a price target of $90.00.
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Timothy Chiodo’s rating is based on several compelling factors that highlight Block’s potential for sustained growth and innovation. The recent investor day underscored the company’s ability to maintain profitable growth across its Square and Cash App ecosystems, with guidance that either meets or exceeds market expectations. Block’s innovative capabilities, demonstrated by its expansion from five to twenty-six revenue streams generating significant gross profits, position it favorably against competitors.
Moreover, Block’s high return on investments, particularly in its go-to-market strategies for Square and Cash App, further solidify its growth prospects. The company’s strategic initiatives, such as Pre-purchase BNPL and increased sales hires, are expected to drive additional growth. Chiodo’s valuation of Block, with a price target of $90 based on a 21x P/E multiple on projected 2027 earnings, reflects confidence in Block’s ability to capitalize on these opportunities and deliver shareholder value.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $91.00 price target.
Based on the recent corporate insider activity of 117 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.