Andrew Schmitt, an analyst from Citi, maintained the Buy rating on Block (XYZ – Research Report). The associated price target is $108.00.
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Andrew Schmitt has given his Buy rating due to a combination of factors that reflect both current performance and future potential. Although Block’s fourth-quarter gross profit was slightly below expectations, it was in line with the company’s outlook, and their adjusted operating income exceeded expectations. This indicates underlying strength, particularly with Square’s Gross Payment Volume (GPV) showing improved growth driven by better same-store sales and customer retention.
Looking ahead, Block’s 2025 outlook has drawn investor attention, with a gross profit growth target of 15%. While this is slightly below expectations, the company aims for a gross profit growth plus adjusted operating margin to reach approximately 35.5%, with expectations to meet the Rule of 40 by 2026. Despite potential short-term reassessment of the stock’s trajectory, Block’s strategic investments and initiatives, such as go-to-market strategies and product enhancements like Cash App borrow and Afterpay, suggest a positive long-term direction with an anticipated share price return of 30.1%.
According to TipRanks, Schmitt is a 4-star analyst with an average return of 7.0% and a 57.04% success rate. Schmitt covers the Technology sector, focusing on stocks such as Fiserv, Corpay Inc, and SS&C Technologies Holdings.
In another report released today, Wells Fargo also reiterated a Buy rating on the stock with a $95.00 price target.