William Blair analyst Andrew Jeffrey has reiterated their bullish stance on XYZ stock, giving a Buy rating today.
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Andrew Jeffrey has given his Buy rating due to a combination of factors that suggest potential upside for Block’s stock. He believes that the negative sentiment following the first quarter’s gross profit miss and the disappointing 2025 guidance is overblown. Block’s management has reset expectations with a new investor relations approach, which Jeffrey sees as a positive move that could lead to better-than-expected gross profit and EBIT in 2025. Additionally, he finds the stock attractively valued, especially when compared to digital banks like Chime.
Jeffrey is also optimistic about Square’s prospects, citing strong international growth, new product offerings, and an expanded salesforce that could drive growth in gross payment volume. He suggests that Square is gaining market share from traditional processors and has significant potential in international markets. Furthermore, he views Cash App’s recent challenges as temporary and expects growth to resume with the integration of Borrow and Afterpay, along with new banking features that could enhance its competitive position.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $73.00 price target.
Based on the recent corporate insider activity of 112 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.