Block stock price target raised to $88 from $71 at Mizuho on Square POS growth

Investing.com - Mizuho raised its price target on Block Inc. (NYSE:XYZ) to $88.00 from $71.00 on Thursday, while maintaining an Outperform rating on the stock. The new target aligns with broader analyst expectations, as targets currently range from $35 to $105, with Block trading at $76.95. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.

The research firm cited a marked improvement in Square’s point-of-sale (POS) volumes and its relative market share within the U.S. next-generation POS industry as key positive developments that the market may be overlooking. The company’s strong position is reflected in its $23.8 billion revenue over the last twelve months and impressive gross profit margin of 40%.

Mizuho was particularly impressed by the positive inflection in the large $500,000+ volume cohort, which it attributes to Block’s recent refocus on improving product parity versus peers, better distribution, and transparent pricing.

The firm described Square as the "comeback kid of 2025" and believes the improvements are "just the beginning" for the payment processing unit of Block.

Mizuho’s new $88 price target is based on an 11x EV/EBITDA valuation multiple, reflecting the firm’s raised estimates following Block’s second-quarter results and upbeat fiscal year 2025 guidance.

In other recent news, Block, Inc. has priced $2.2 billion in senior notes, increasing the offering size from an initially announced $1.5 billion. The issuance includes $1.2 billion in 5.625% senior notes due 2030 and $1.0 billion in 6.000% senior notes due 2033. The company plans to use the proceeds for general corporate purposes, which may include debt repayment and acquisitions. Block’s notes offering received a ’BB+’ rating from S&P Global Ratings and a ’BBB-’ rating from Fitch Ratings. On the analyst front, Argus raised its price target for Block to $84, maintaining a Buy rating, citing improved financial guidance for 2025, including a projected 14% gross profit growth. Meanwhile, Macquarie also increased its price target for Block to $67 after the company’s quarterly earnings exceeded market expectations, despite a revenue miss related to Bitcoin. These developments reflect Block’s ongoing strategic financial maneuvers and the market’s response to its recent performance.

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