Block initiated with a Buy at Loop Capital

As previously reported, Loop Capital analyst Dominick Gabriele initiated coverage of Block (XYZ) with a Buy rating and $75 price target as part of a broader research note on FinTech Payments. The firm says investors should expect potential volatility near term as the market gets off the sugar high related to Block’s announced 40% staffing cut, though with that said, Loop sees Block positioning themselves to provide advanced tools at the point-of-sale that is differentiated, adding that the company is likely to maintain above industry gross profit growth given their determination in resuming growth in monthly transacting actives, the analyst tells investors in a research note.