Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Argus raised its price target on Block Inc (NYSE:XYZ) to $84.00 from $59.00 on Tuesday, while maintaining a Buy rating on the financial technology company’s stock. According to InvestingPro analysis, Block currently appears undervalued, trading at $74.54 with a P/E ratio of 15.5x.
The research firm cited Block’s updated financial guidance for 2025, which now calls for 14% gross profit growth, up from a previous expectation of 12%. Block also increased its adjusted operating income forecast to $2.0 billion from $1.9 billion, representing a margin of approximately 20%, up from 19%. InvestingPro data shows Block maintains strong financial health with a perfect Piotroski Score of 9, though 12 analysts have recently revised their earnings expectations downward.
Despite the higher price target, Argus lowered its 2025 earnings per share estimate for Block to $2.67 from $3.27, citing lower revenue assumptions. The firm also reduced its 2026 EPS forecast to $3.71 from $4.57. Get access to 10+ additional exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
Argus now expects Block’s revenues to increase by 3% in 2025, down from its previous forecast of 4% and below the 2024 pace of 10%. The firm attributed this primarily to bitcoin revenues falling 17% in the first half of the year.
Block expects to see acceleration in gross profit growth in the second half of the year, supported by various growth initiatives, and projects it will exit 2025 at a Rule of 34 run rate, down from a Rule of 36 in 2024.
In other recent news, Block Inc. has reported quarterly earnings that exceeded market expectations, prompting several investment firms to raise their price targets for the company. Macquarie increased its price target to $67, citing an earnings beat despite a revenue miss related to Bitcoin. Bernstein SocGen Group also raised its target to $95, noting the company’s improved earnings report and updated guidance forecasting a 19% growth in gross profit by year-end. Keefe, Bruyette & Woods echoed this sentiment, boosting their target to $95 due to strong second-quarter results and positive trends in Cash App and Seller GPV. Similarly, TD Cowen increased its price target to $95, highlighting a broad-based recovery in Block’s performance with a notable reacceleration in Cash App profits. Needham set the highest target at $100, attributing it to robust growth in both the Square segment and Cash App, driven by services like Borrow, Card, and Buy Now, Pay Later. These developments reflect a positive outlook from analysts following Block’s latest financial performance.
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