Block, the Technology sector company, was revisited by a Wall Street analyst today. Analyst James Faucette from Morgan Stanley maintained a Buy rating on the stock and has a $73.00 price target.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
James Faucette has given his Buy rating due to a combination of factors including Block’s solid progress in its distribution and go-to-market strategies, particularly within its Square Seller segment. Despite concerns about Cash App’s demographic profile potentially limiting its volume and monetization potential, Faucette raises estimates based on a more favorable macroeconomic outlook. He anticipates that credit expansion, including short-term loans, will be crucial for sustaining double-digit gross profit growth.
Furthermore, Faucette has increased the price target to $73, reflecting a slight upward revision in Cash App’s gross profit growth forecast and adjustments in multiple assumptions for Cash App and Square Seller. This adjustment is supported by a positive view of consumer spending and a recent expansion in multiples among peers. The focus remains on whether credit expansion will lead to improved inflows per active user and enhancements in direct deposit accounts, which are seen as more reliable indicators of long-term growth than short-term financial gains.
According to TipRanks, Faucette is a 5-star analyst with an average return of 5.3% and a 63.69% success rate. Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Fiserv.