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Investing.com - BofA Securities raised its price target on Block Inc. (NYSE:XYZ) to $94.00 from $88.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for Block range from $35 to $105, with a "Buy" consensus rating of 1.85. The stock, currently trading at $76.85, shows strong momentum with a 25.5% return over the past year.
The firm cited Block’s solid second-quarter results, which were boosted by strong performance in the Square business segment and improving trends in the Cash App division. The company maintains healthy financials with a current ratio of 2.27 and an impressive gross profit margin of 38.2%.
Block raised its full-year guidance following the quarterly results, with BofA noting the company has adopted a positive tone indicating it is "back on offense" with its business strategy.
BofA Securities pointed out that Block’s previous 2025 guidance had embedded expectations for macro deterioration that has not materialized, making the improved outlook unsurprising.
The company continues to incorporate a dynamic macroeconomic outlook in its guidance while accounting for strong execution and growth initiatives expected in the second half of the year, according to BofA’s analysis. With an overall Financial Health score of "GOOD" and nine analysts revising earnings upward, Block appears well-positioned for continued growth.
In other recent news, Block Inc. has seen several updates from analyst firms regarding its stock performance. Jefferies has raised its price target for Block to $95, maintaining a Buy rating, citing a strong earnings performance and increased guidance. Similarly, Wolfe Research reiterated its Outperform rating with the same price target, emphasizing the company’s innovation and technological differentiation. BTIG also increased its price target to $80 ahead of Block’s upcoming second-quarter earnings report, maintaining a Buy rating based on growth initiatives and margin expansion.
However, not all assessments were upgrades. Morgan Stanley (NYSE:MS) downgraded Block to Equalweight from Overweight, maintaining a price target of $73, due to what it sees as a fair valuation after a significant rise in the stock’s price. Despite differing opinions, the consensus among analysts highlights Block’s market share growth and innovation as key factors in its recent developments. These updates come as the company continues to build on its U.S. market share, according to Jefferies. Investors may find these insights useful as they assess Block’s future potential in the market.
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