Analyst Bryan Bergin of TD Cowen maintained a Buy rating on Block, boosting the price target to $95.00.
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Bryan Bergin has given his Buy rating due to a combination of factors that highlight Block’s strong financial performance and growth potential. One of the key reasons is the solid second-quarter results, where both Cash App and Square showed significant growth in gross profit. The Cash App’s gross profit accelerated to 16%, driven by products like Borrow, Buy Now Pay Later, and Cash Card, while Square’s gross payment volume increased by 10%, with improvements in both the US and international markets.
Bergin also notes the company’s raised financial guidance for the fiscal year 2025, indicating increased confidence in the second half of the year. The reorganization efforts appear to have been successful, leading to improved product velocity and greater confidence in achieving the Rule of 40 by fiscal year 2026. Furthermore, the company’s shares have seen a meaningful increase, and the upcoming catalysts in the second half of the year, including the November Investor Day, are expected to further accelerate growth. These factors contribute to the raised price target of $95 and the Buy rating.