Block stock price target raised to $58 from $50 at Piper Sandler

Investing.com - Piper Sandler raised its price target on Block Inc. (NYSE:XYZ) to $58.00 from $50.00 while maintaining an Underweight rating on the stock. According to InvestingPro data, analyst targets for Block range from $35 to $105, with 9 analysts recently revising their earnings expectations upward.

The price target increase follows Block’s updated fiscal year 2025 guidance, which prompted shares to trade up more than 5% in after-hours trading despite the company missing consensus earnings per share expectations by one cent. Block maintains a "GOOD" overall financial health score according to InvestingPro analysis, with current ratio of 2.27x indicating strong liquidity.

Block management indicated gross profit acceleration is expected into year-end, primarily driven by increasing attachment rates in high-margin Cash App products such as Borrow and Buy Now, Pay Later services. The company’s gross profit margin stands at 38.2%, with revenue growing at 4.6% year-over-year. Get deeper insights into Block’s financial metrics and 10+ additional ProTips with an InvestingPro subscription.

Piper Sandler noted that while Square’s gross payment volume accelerated in the quarter, the firm remains hesitant to extrapolate from a single quarter’s performance and sees near-term headwinds to user growth amid rising competition from smaller point-of-sale competitors.

The research firm justified its continued Underweight stance by pointing to persistent deceleration in Cash App user growth, which was flat year-over-year in the second quarter of 2025 with gross payment volume down 34% compared to the previous year, along with mounting competition across Block’s business lines.

In other recent news, Block Inc. reported its second quarter 2025 earnings, showing a mixed financial performance. The company missed analyst expectations with earnings per share of $0.62, falling short of the projected $0.67. Revenue also did not meet forecasts, coming in at $6.05 billion compared to the anticipated $6.27 billion. These results highlight a 7.46% shortfall in earnings and a revenue miss. Despite these figures, Block’s stock experienced a notable surge, driven by strong operational updates and future growth prospects. The recent developments indicate that investors may be focusing on the company’s potential rather than its current earnings performance. The earnings call highlighted key takeaways that may have influenced investor sentiment. These recent developments are crucial for investors monitoring Block Inc.’s financial health and future trajectory.

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