Block initiated with a Market Perform at BMO Capital

BMO Capital initiated coverage of Block (XYZ) with a Market Perform rating and $74 price target A “materially improved operating model” supports a more durable earnings profile and the firm sees “reasonable potential” for upside to gross profit and earnings estimates should management deliver on its 2026 strategy, the analyst tells investors. However, a recent rebound in shares implies a more balanced risk-reward, adds the analyst, who identifies the “central Cash App debate” as whether user conversion into higher-value cohorts can sustain 20% gross profit growth beyond 2026.