The share price of Block Inc. (ASX: SQ2) has exploded in the last month of trade and is up more than 20% in that time.

Shares in the fintech company have surged by over 10% on Tuesday, potentially driven by a bullish analyst note from Piper Sandler.

Zooming out, Block shares have rallied 8% so far this year, lifting from $87.64 in early August to trade at $126.19 apiece at the time of writing.

What's driving the Block share price?

Block, which owns buy now, pay later (BNPL) pioneer Afterpay, has rallied hard this week after the outcome of the US Election was decided.

This saw its US-listed shares rally as investors piled into US stocks en masse, lifting the US market to a record high in doing so.

Now investment firm Piper Sandler has chimed in with a bullish rating on the Block share price. Analyst Arvind Ramnani initiated coverage with an overweight rating on the stock, setting a price target of US$83 for Block shares trading on the US.

This equals about AUD$126 per share at current exchange rates.

According to Piper Sandler's note, Block's third-quarter results showcased solid performance across its business lines, particularly in gross profit growth. Ramnani called this "impressive", according to The Australian Financial Review

For Q3 Block reported a 19% year over year rise in gross profit, reaching $2.25 billion, while pre-tax earnings came in at $807 million.

Plenty of analysts are bullish

The Block share price has been volatile over the past 12 months. For instance, shares are up 57% over the past year but are down since the company finalised the Afterpay acquisition.

Despite this, ECP Asset Management argues that Block is significantly undervalued.

According to my colleague Bernd, ECP suggests the ASX 200 tech share trades on a "high-teens multiple" of projected earnings.

To ECP, this makes it an attractive buy, given the recent growth in sales and gross profit

The firm joins the list of brokers that are bullish on the Block share price at present. According to CommSec, all analysts covering the stock rate it a buy.

Foolish takeout

The Block share price has rallied today as brokers throw in more support behind the fintech company.

Sentiment is positive on the stock, and it trades at a trailing price-to-earnings (P/E) ratio of more than 61 times.

Investors, therefore, expect big growth from the company moving forward. The combination of time and fate will decide whether this is a risk or not.