Morgan Stanley lowered the firm’s price target on Block (XYZ) to $71 from $77 and keeps an Equal Weight rating on the shares. Block delivered on widely anticipated outperformance in Cash App and Square GPV acceleration, but an EBITDA miss and Gross Profit deceleration in Square are “likely disappointing” to investors looking for clean prints and consistent margin outperformance to underwrite a premium valuation, the analyst says in a post-earnings note.
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