As previously reported, Compass Point analyst Dominick Gabriele downgraded Block (XYZ) to Sell from Buy with a price target of $65, down from $80. Despite a beat and raise report, the firm is “not happy,” says the analyst, who argues that the company could beat estimates by further boosting lending, but “ramping loans above industry rates has historically come at a price.” Block’s growth is “too dependent on lending to deserve a premium valuation,” the analyst tells investors.
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