Block stock price target raised to $95 from $90 at Jefferies

Investing.com - Jefferies raised its price target on Block Inc. (NYSE:XYZ) to $95.00 from $90.00 on Friday, while maintaining a Buy rating on the stock. Currently trading at $76.85, Block maintains a strong Buy consensus among analysts, with an average rating of 1.85 according to InvestingPro data.

The firm cited Block’s "big beat" on earnings and raised guidance as factors in its decision to increase the price target. Jefferies noted that Block’s U.S. market share gain story "continues to build" despite some concerns. The company’s revenue grew 4.6% year-over-year, with a healthy gross profit margin of 38.2%.

The research firm pointed out that Square’s gross profit is lagging behind gross payment volume (GPV) in the second half of the year, following a narrower than expected spread in the second quarter. Jefferies characterized this as a "downtick," while acknowledging some of these headwinds may be temporary.

Jefferies observed that Block’s second-half gross profit acceleration is primarily driven by the Borrow feature in Cash App, which the firm suggested "draws scrutiny on quality/sustainability." Despite this concern, the analyst noted that Block’s guidance "continues to embed conservatism."

The firm emphasized that Block’s accelerating growth with upward revisions "still has scarcity value" within its peer group, supporting the maintained Buy rating alongside the higher price target. InvestingPro analysis suggests Block is currently undervalued, with 9 analysts recently revising their earnings estimates upward. Get the full analysis and 10+ additional ProTips with an InvestingPro subscription.

In other recent news, Block Inc. is set to release its second-quarter earnings report, with BTIG raising its stock price target to $80 from $70 while maintaining a Buy rating. This adjustment comes amid a significant rally in Block’s stock since the first quarter of 2025. Meanwhile, Morgan Stanley (NYSE:MS) has downgraded Block from Overweight to Equalweight, citing a fair valuation with a maintained price target of $73. Wolfe Research continues to support Block, reiterating an Outperform rating with a $95 price target, emphasizing the company’s innovation and technological differentiation. This perspective is based on Block’s potential for market share gains through its Square and Cash App businesses. Additionally, Cash App has introduced a new "pools" feature to facilitate group payments, allowing users to create and manage payment pools with contributions from multiple sources. This feature supports payments through Cash App, Apple (NASDAQ:AAPL) Pay, and Google (NASDAQ:GOOGL) Pay, enabling real-time tracking of contributions. These developments highlight Block’s ongoing efforts to innovate and expand its offerings.

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