Undervalued Growth: Justifying a Buy Rating on Block’s Accelerating Square and Cash App Ecosystem

William Blair analyst Andrew Jeffrey has maintained their bullish stance on XYZ stock, giving a Buy rating on February 22.

Andrew Jeffrey has given his Buy rating due to a combination of factors, primarily the contrast between Block’s robust fundamentals and its weak share performance. He views the recent underperformance as partly self-inflicted via conservative guidance communication, but believes this has left the stock trading only in line with slower-growing fintech peers despite Block’s much faster organic gross profit growth and stronger technology stack.

He also highlights Square’s accelerating trajectory after significant investment in software and distribution, particularly in key verticals like restaurants and an expanded salesforce aimed at boosting new volume. In his view, the market underestimates both Square’s competitive edge and the long-term earnings leverage from Block’s consumer liquidity and Cash App ecosystem, supporting expectations for GPV growth meaningfully above legacy processors and justifying a Buy recommendation at current valuation levels.

In another report released on February 22, Bank of America Securities also maintained a Buy rating on the stock with a $75.00 price target.