Block stock price target lowered to $90 from $95 at Jefferies

Investing.com - Jefferies has reduced its price target on Block Inc. (NYSE:XYZ) to $90.00 from $95.00, while maintaining a Buy rating on the financial technology company’s stock. According to InvestingPro data, analyst targets currently range from $35 to $154, with the stock showing strong momentum over the past three months despite its high volatility (Beta 2.71).

The price target adjustment comes as Jefferies evaluates Block’s second-quarter performance, noting that while Square’s U.S. gross payment volume (GPV) is showing positive momentum, investor sentiment has become more cautious.

The firm points to emerging concerns about Cash App’s reliance on lending activities, which has become more apparent following the second-quarter results.

Jefferies also highlights ongoing debate regarding the structural gross profit growth algorithm in Square, Block’s merchant services segment, as another factor potentially limiting near-term stock performance.

Despite these short-term concerns, Jefferies remains optimistic about Block’s prospects, suggesting the stock could regain momentum in coming quarters, supporting its decision to maintain a Buy rating despite the lower price target.

In other recent news, Block Inc. reported that its lending business has become a significant growth driver, contributing approximately 22% of the company’s gross profit and accounting for more than 50% of its gross profit growth in the second quarter of 2025. This development led Bernstein SocGen Group to reiterate an Outperform rating for Block, maintaining a price target of $95.00. Additionally, Block has priced $2.2 billion in senior notes, increasing the offering size from the previously announced $1.5 billion. The offering includes $1.2 billion in 5.625% senior notes due in 2030 and $1.0 billion in 6.000% senior notes due in 2033. In a separate move, Mizuho raised its price target for Block to $88.00 from $71.00, highlighting improvements in Square’s point-of-sale volumes as a positive factor. Furthermore, Block unveiled its new modular bitcoin mining system, Proto Rig, and a free open-source fleet management software, Proto Fleet, during an event at Core Scientific’s facility in Dalton, Georgia. Core Scientific is the first customer for Proto’s chips. These developments reflect Block’s ongoing strategic initiatives and financial maneuvers.

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