Block downgraded to Neutral at Piper Sandler on Cash App headwinds

Piper Sandler analyst Arvind Ramnani downgraded Block (XYZ) to Neutral from Overweight with a price target of $51, down from $85. Q1 revenue and gross profit came in below consensus, primarily due to weakness in Cash Apps, notes the analyst, who believes the stock “could screen attractively” given the 21% pullback in share price. However, the firm is lowering its rating and target given pressured fundamentals and believes that guidance that suggests meaningful acceleration in the second half “may be overly optimistic.”