Harshita Rawat, an analyst from Bernstein, maintained the Buy rating on Block. The associated price target remains the same with $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 differentiation in the market. The company has shown a promising ability to accelerate its key performance indicators, particularly in terms of Square’s gross payment volume (GPV) and Cash App user growth. This positive outlook is supported by improvements in organizational culture and product development speed, alongside a strategic focus on leveraging artificial intelligence to enhance their offerings.
Additionally, Block’s transformation in its go-to-market strategy is yielding significant growth in net value added, with management projecting continued growth in GPV and gross profit. The integration of software, financial products, and hardware, along with innovative AI solutions like ManagerBot, positions Square as a differentiated player in a competitive landscape. Furthermore, the potential to convert Cash App users into banking or borrowing customers presents a substantial opportunity for increased revenue per user, further justifying the Buy rating.
Rawat covers the Technology sector, focusing on stocks such as Fiserv, Block, and Klarna Group Plc. According to TipRanks, Rawat has an average return of 7.7% and a 55.81% success rate on recommended stocks.
In another report released yesterday, UBS also reiterated a Buy rating on the stock with a $90.00 price target.