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Investing.com - Bernstein SocGen Group raised its price target on Block Inc. (NYSE:XYZ) to $90.00 from $75.00 on Tuesday, while maintaining an Outperform rating on the stock. The stock has shown strong momentum, gaining over 18% in the past week, according to InvestingPro data.
The firm cited Block’s upcoming inclusion in the S&P 500 on July 23 as a potential catalyst for increased long-only investor interest, which has been lacking despite the stock being a popular hedge fund long trade.
Bernstein views Block as one of the most catalyst-rich names in its coverage heading into the second half of 2025, with potential for improving key performance indicators including Square GPV acceleration and Cash App MAU growth.
The firm sees potential for mid-to-high teens gross profit growth versus the approximately 14% consensus, along with strong buybacks. Bernstein noted Block’s valuation is "undemanding" at 23x GAAP PE with approximately 17% of market cap as gross cash on the balance sheet.
Block plans to hold an investor day in November, which could serve as another catalyst for the stock, according to Bernstein’s analysis.
In other recent news, Block Inc. has been highlighted by JPMorgan, which raised its price target for the company from $60 to $90, maintaining an Overweight rating. This development follows the announcement that Block is set to join the S&P 500 index, replacing Hess Corp (NYSE:HES). after its acquisition by Chevron Corp. (NYSE:CVX) The inclusion in the index will take effect before trading begins on July 23. Additionally, Block’s Cash App has entered into a partnership with actor Timothée Chalamet for a new commercial campaign, marking Chalamet’s first collaboration with a financial services platform. The campaign features a commercial spot airing in U.S. movie theaters. Meanwhile, JPMorgan Chase (NYSE:JPM)’s plan to implement data access fees has impacted fintech stocks, including Block, with shares reportedly affected by the announcement. Bernstein analyst Harshita Rawat noted that these fees could vary based on the type of data request, potentially influencing fintech operations. These developments provide a snapshot of Block’s current activities and market dynamics.
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