In a report released yesterday, Jason Kupferberg from Bank of America Securities reiterated a Buy rating on Block (XYZ – Research Report), with a price target of $80.00.
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Jason Kupferberg has given his Buy rating due to a combination of factors including the undervaluation of Block’s two-sided ecosystem and the potential for improved execution. Despite a challenging start to the year with a significant miss in Cash App’s performance and a downward revision in future guidance, Kupferberg sees value in the company’s structure and future prospects.
The expectation of a re-acceleration in Cash App’s growth in the second half of the year, driven by initiatives like Cash App Borrow and Afterpay, further supports the Buy rating. Additionally, the solid performance of Square and its anticipated growth through new product and distribution initiatives contribute to a positive long-term outlook. Although the near-term outlook may be challenging, Kupferberg believes the company’s strategic initiatives and market position justify a Buy recommendation.
Kupferberg covers the Technology sector, focusing on stocks such as Cognizant, Block, and Fidelity National Info. According to TipRanks, Kupferberg has an average return of -3.4% and a 49.19% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $69.00 price target.