Block (XYZ – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Trevor Williams from Jefferies maintained a Buy rating on the stock and has a $70.00 price target.
Trevor Williams has given his Buy rating due to a combination of factors that suggest potential for Block’s stock to perform well despite current challenges. The report acknowledges slight misses in gross profit and GPV, primarily influenced by Cash App, but considers these issues already factored into the stock’s price. Williams sees potential for a relief rally if the company’s performance is not as poor as feared, which could boost investor confidence.
Additionally, while expectations for GPV growth are modestly lowered, the analyst remains cautiously optimistic that these estimates might be conservative. The report highlights that the company’s outlook was based on a weak period, but recent market-level growth shows improvement. Furthermore, despite macroeconomic uncertainties and the stock’s underperformance, there is an expectation of post-first quarter acceleration driven by factors such as expanded Borrow eligibility and increased location growth in the Seller segment.
In another report released on April 14, Barclays also maintained a Buy rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 102 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XYZ in relation to earlier this year.