Block, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Gustavo Gala from Monness reiterated a Buy rating on the stock and has a $105.00 price target.
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Gustavo Gala has given his Buy rating due to a combination of factors that highlight Block’s strategic advancements and financial prospects. The company’s Investor Day emphasized a focus on automation and accountability, reminiscent of the 3Q23 Rule of 40 regime, suggesting a promising future for the company’s profitability and growth. The anticipated network effects between Cash App and Square ecosystems are nearing fruition, with infrastructure already in place to support this integration.
Financially, Block is expected to see upward revisions in gross profit, with preliminary guidance for 2026 indicating positive trends. The company’s authorization of a $5 billion increase in buybacks further strengthens its financial position. Additionally, the growth in software attachment from larger customers and the expansion of sales headcount are expected to drive significant volume growth, particularly in the Square segment, while Cash App’s push into lending and enhanced customer rewards are likely to accelerate growth and engagement.
Gala covers the Technology sector, focusing on stocks such as Strategy, Fiserv, and Block. According to TipRanks, Gala has an average return of -4.2% and a 38.46% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $80.00 price target.