Block initiated with a Sell at Truist

Truist initiated coverage of Block (XYZ) with a Sell rating and $60 price target The firm likes Block as a company long-term, but believes this is a “really difficult stock to own late cycle” as its two business segments are sensitive to the macro environment. In addition, Block is leaning into growth of its lending products in order to reaccelerate growth throughout 2025, which may lead to higher credit losses and a tough grow-over in 2026, the analyst tells investors in a research note. As such, Truist expects the shares to underperform peers.