Jason Kupferberg, an analyst from Bank of America Securities, reiterated the Buy rating on Block (XYZ – Research Report). The associated price target was lowered to $80.00.
Jason Kupferberg has given his Buy rating due to a combination of factors including the quality of Block’s business model, its tools to protect adjusted operating income guidance, and its current valuation. Despite a challenging macroeconomic environment, Kupferberg believes that Block’s strategic initiatives, such as the broader rollout of Cash App Borrow, will drive growth and improve margins.
Furthermore, while there is a potential for Block to lower its 2025 gross payment volume and gross profit guidance, Kupferberg sees this as a move towards more achievable targets, which could be positively received by the market. Additionally, Block’s commitment to expense discipline, as evidenced by recent headcount reductions, supports the Buy rating as it positions the company to better navigate potential changes in the top-line environment.
Kupferberg covers the Technology sector, focusing on stocks such as Cognizant, Accenture, and Fiserv. According to TipRanks, Kupferberg has an average return of -3.1% and a 48.99% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $70.00 price target.