In a report released today, Bryan Bergin from TD Cowen maintained a Buy rating on Block, with a price target of $95.00.
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Bryan Bergin has given his Buy rating due to a combination of factors that emphasize the resilience of Block’s core economics despite Bitcoin-driven volatility. While he modestly reduced revenue estimates to align with the disclosed $1.7B in first-quarter Cash App Bitcoin Ecosystem sales, he notes that the resulting effect on gross profit is largely neutral once other parts of the model are adjusted.
He also highlights that management’s introduction of a new quarterly disclosure metric should help investors look past headline swings in reported revenue that stem from Bitcoin activity and do not meaningfully alter underlying performance. Given that Bitcoin-related fluctuations have a limited impact on gross profit, adjusted operating income, and adjusted EPS, Bergin maintains a $95 price target grounded in attractive CY27 valuation multiples across EV/EBITDA, P/E, and EV/FCF, supporting his Buy recommendation.
In another report released on March 31, RBC Capital also maintained a Buy rating on the stock with a $90.00 price target.