By Emily Dattilo
A recent selloff for Block stock is an opportunity, one Wall Street team argued.
Keefe, Bruyette & Woods analysts led by Vasundhara Govil upgraded Block stock to Outperform from Market Perform. They lowered their target for the price to $80 from $87 in a report titled "It's Time to Get on Board."
Block operates through two segments: Square and the Cash App. Square is a point-of-sale system that lets businesses accept card payments. The Cash App is a digital wallet service.
The stock gained 1.8% to $59.72 in morning trading.
Last month, Block reported fourth-quarter results that fell short of analysts' estimates. Since then, shares have tumbled about 29%, according to Dow Jones Market Data.
Though the market seems skeptical, the KBW analysts believe the company can deliver on a forecast that growth in gross profit will leap in the second half of the year. They say there is a possibility that Block's valuation could rise if the company can meet consensus estimates for its financial performance.
"We are expecting Cash App to be the bigger driver of the growth acceleration (70%) in 2025, which helps provide confidence in the acceleration, as we think this is where the company has better control and visibility with its new product launches," the analysts wrote.
Write to Emily Dattilo at emily.dattilo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 18, 2025 09:45 ET (13:45 GMT)
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