Trevor Williams, an analyst from Jefferies, maintained the Buy rating on Block (XYZ – Research Report). The associated price target remains the same with $85.00.
Trevor Williams has given his Buy rating due to a combination of factors influencing Block’s potential growth and market positioning. One of the primary reasons is the strategic focus on enhancing compliance infrastructure, which, although it has slowed product development, positions the company for long-term stability and regulatory alignment. Additionally, the Cash App’s market saturation indicates a strong existing user base, and efforts to shift consumer perception from a money movement app to a primary banking service could unlock new revenue streams.
Moreover, the deliberate pace of expansion in the Borrow segment demonstrates a cautious approach to credit management, ensuring sustainable growth. The introduction of Buy Now, Pay Later (BNPL) features on the Cash Card, despite initial limitations, presents a future opportunity for increased user engagement. Overall, these strategic initiatives, combined with targeted marketing investments, are expected to enhance Block’s competitive edge and drive future growth, justifying the Buy rating.
In another report released today, KBW also upgraded the stock to a Buy with a $80.00 price target.