Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Block (XYZ – Research Report). The associated price target is $90.00.
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Mayank Tandon has given his Buy rating due to a combination of factors that suggest the potential for future growth and profitability for Block. Despite the mixed results in XYZ’s recent fourth-quarter performance, where weaker Cash App trends were mitigated by effective cost management, there is an expectation of accelerated gross profit growth throughout the fiscal year 2025. This optimism is supported by the company’s plans to introduce new products and expand its financial offerings, which are anticipated to increase adoption and usage.
Furthermore, Tandon highlights the company’s attractive valuation and management’s dedication to enhancing profitability. Although near-term growth is below expectations, the projection that growth will significantly improve later in the year, driven by new product rollouts and increased market share, reinforces the Buy rating. These strategic initiatives are seen as key drivers for long-term growth, making Block an appealing investment for growth-focused investors.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $115.00 price target.