Block stock price target raised to $95 from $79 at Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Block Inc. (NYSE:XYZ) to $95.00 from $79.00 while maintaining an Outperform rating following the company’s second-quarter results. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $35 to $105, with the stock currently trading at $76.85.

Block delivered approximately 8% adjusted EBITDA upside on a roughly 3% gross profit beat compared to Street expectations. Cash App gross profit growth accelerated about 600 basis points to 16%, exceeding consensus by approximately 700 basis points.

The U.S. Seller gross payment volume (GPV) showed acceleration of 140 basis points, approximately double the rate of payment networks. Block also raised its 2025 outlook beyond the second-quarter upside.

The updated guidance now calls for 14% gross profit growth compared to Street expectations of approximately 12%, and adjusted operating margins of 20.0% versus Street expectations of 19.2%. This improvement stems solely from a stronger second-half Cash App outlook.

Raymond James noted that while the third-quarter adjusted operating margin was slightly below expectations by about 130 basis points, gross profit dollar growth was approximately 300 basis points ahead of forecasts. The firm views Block’s current valuation of 15 times estimated 2026 EBITDA including stock-based compensation as representing a favorable risk/reward profile. This assessment is supported by InvestingPro’s analysis, which indicates the stock is currently undervalued. Get access to 10+ additional ProTips and comprehensive valuation metrics with an InvestingPro subscription.

In other recent news, Block Inc. has seen a series of analyst actions following its second-quarter performance. BofA Securities increased its price target for Block to $94, citing strong results in the Square business segment and improving trends in the Cash App division. Similarly, Jefferies raised its price target to $95, highlighting a significant earnings beat and enhanced guidance, while noting the continued growth in Block’s U.S. market share. BTIG also increased its price target to $80 ahead of Block’s earnings report, pointing to growth initiatives and margin expansion as key factors.

Conversely, Morgan Stanley (NYSE:MS) downgraded Block to Equalweight, maintaining a $73 price target, as the stock’s valuation has become more aligned with market expectations. Despite this, Wolfe Research reiterated an Outperform rating with a $95 target, emphasizing Block’s innovation and technological differentiation. These recent developments reflect a mix of optimism and caution among analysts regarding Block’s future performance.

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