Block assumed with an Underweight at Piper Sandler

Piper Sandler assumed coverage of Block (XYZ) with an Underweight rating and $50 price target While Block’s valuation is “depressed” relative to its historical average and peers, this is warranted given the persistent deceleration of Cash App user growth and mounting competition across its business lines, the analyst tells investors in a research note. Piper sees headwinds to the user growth for Square, due to a maturation of upmarket customers as a percentage of Square’s total volume and increasing competition from smaller competitors.