Clover results raise bar for Block earnings report, says Mizuho

Mizuho analyst Dan Dolev says the health of Block’s (SQ) Seller business is a key controversy heading into the Q1 earnings report. Analyzing Fiserv’s (FISV) Clover volumes, where growth accelerated in Q1, suggests Square may potentially need to maintain its January/February 21% growth rates to keep consistent share of U.S. Visa volumes relative to Clover, the analyst tells investors in a research note. With tougher compares in March and a slowing macro environment, the firm believes it is unlikely that Block holds 21% growth. This could "potentially weigh on the narrative," it writes. However, Mizuho believes strong Cash App growth and margin upside may more than offset any Seller weakness. It keeps a Buy rating on Block with an $85 price target.