Rothschild & Co Redburn upgraded Block (XYZ) to Neutral from Sell with a price target of $55, up from $45. The firm believes the market is increasingly viewing Block as a neobank. It increased the company’s estimates by 28%-34%, citing stronger CashApp Borrow loan growth and expense savings from AI cost reductions. Block’s current multiple is now in line with its neobanking peers, the analyst tells investors in a research note. However, Rothschild believes the consensus estimates are underestimating the company’s loan losses given its loan growth. The firm’s forecasts are 5%-10% below consensus.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on XYZ:
- Block upgraded to Neutral from Sell at Rothschild & Co Redburn
- Meta’s Layoff Cost Savings Won’t “Make as Big of a Dent” — Is This About AI?
- Jefferies says Meta headcount cuts could show AI deliver real productivity gains
- It’s Official: Pi Network (PI) Hits Kraken, Sending Price Soaring
- Adobe Stock Plunges on CEO Exit and AI Restructuring Fears