Block initiated with a Buy at Compass Point, citing three reasons to own

As previously reported last night, Compass Point initiated coverage of Block (XYZ) with a Buy rating and $80 price target, citing three reasons to own the shares. Namely, the firm views Cash App as undervalued versus Chime (CHYM); contends that Cash App gross profit has upside given the anticipated ramp in Cash App Borrow; and notes that its Block estimates are 3% higher on gross profit and 10% higher on adjusted EBITDA than consensus for 2026 due to leverage in margins from a push to lending products.