Block price target lowered to $90 from $95 at Jefferies

Jefferies lowered the firm’s price target on Block (XYZ) to $90 from $95 and keeps a Buy rating on the shares. The firm says Block emerged from its Q2 earnings report with a “less buoyant narrative” as Cash App’s dependence on lending has become clear while a debate has emerged over the structural gross profit growth in Square. While these are likely to keep the stock range-bound near-term, Block has multiple ways to regain momentum over the coming quarters, the analyst tells investors in a research note. Jefferies believes the bull case of Square’s U.S. gross payment volume picking up via a product cycle and enhanced go-to-market function is playing out.