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Investing.com - TD Cowen raised its price target on Block Inc. (NYSE:XYZ) to $95.00 from $85.00 on Friday, while maintaining a Buy rating on the financial technology company’s stock. This aligns with the broader analyst consensus, as InvestingPro data shows a strong Buy recommendation (1.85) and indicates the stock is currently trading below its Fair Value.
The price target increase follows Block’s second-quarter performance, which TD Cowen described as a "broad-based bounceback" with solid results that beat expectations. The firm noted reacceleration of Cash App gross profit to 16%, led by strength in Borrow, Buy Now Pay Later, and Cash Card services. With a healthy current ratio of 2.27 and market capitalization of $46.86 billion, Block demonstrates strong financial fundamentals.
Square’s gross payment volume rose to 10% with 11% gross profit, showing improvement in both U.S. and international markets due to distribution and product investments, according to TD Cowen’s analysis.
Block has raised its fiscal year 2025 guidance following the second quarter results, with TD Cowen noting the company expressed "incremental confidence" in second-half performance. The firm indicated that Block’s third-quarter and fourth-quarter gross profit forecasts are ahead by 2.4% and 3.2% respectively.
Despite the improved outlook, TD Cowen observed that Block maintains what it called a "more prudent guide framework" as it enters the second half of the year.
In other recent news, Block Inc. reported its second-quarter 2025 earnings, which showed a mixed financial performance. The company missed analyst expectations with earnings per share of $0.62, falling short of the forecasted $0.67. Revenue also did not meet projections, coming in at $6.05 billion compared to the anticipated $6.27 billion. Despite these misses, several firms have updated their outlook on Block. Needham raised its price target to $100, citing strong growth in the Square segment and Cash App services. KeyBanc also increased its price target to $100 following better-than-expected gross profit and adjusted operating income. Morgan Stanley (NYSE:MS) adjusted its target to $77, maintaining an Equalweight rating, while Piper Sandler raised its target to $58, despite the company missing consensus earnings expectations. These updates reflect Block’s operational strength and future growth potential, as noted by the firms.
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