Strong Growth Potential for Block: Buy Rating Driven by Strategic Shifts and Market Expansion

In a report released today, Trevor Williams from Jefferies maintained a Buy rating on Block (XYZ – Research Report), with a price target of $75.00.

Trevor Williams has given his Buy rating due to a combination of factors that suggest strong growth potential for Block. The company has made significant strides in closing competitive gaps and improving distribution, positioning itself to effectively compete in the full-service restaurant sector. This strategic shift is expected to drive a 12%+ growth in US Gross Payment Volume (GPV) by the end of 2026, with market share in full-service restaurants projected to reach 3% by the end of 2026 and 5.5% by 2027.
Williams also highlights the expansion of Block’s Total Addressable Market (TAM) with recent product enhancements and go-to-market strategies, such as the introduction of Square Handheld and improved integrations with providers like Restaurant365. These changes are anticipated to increase Block’s presence in full-service restaurants and bars, which historically have been challenging markets for the company. Additionally, the ongoing transition from legacy point-of-sale systems in the restaurant industry presents further opportunities for Block to capture market share, supporting the optimistic growth outlook that underpins the Buy rating.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $69.00 price target.

Based on the recent corporate insider activity of 111 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.