Block stock well-positioned for growth as UBS maintains Buy rating

Investing.com - UBS maintained its Buy rating and $95.00 price target on Block Inc. (NYSE:XYZ) on Friday, citing strong positioning for improved trends across both its Square and Cash App ecosystems. Currently trading at $78.72, Block maintains a "Buy" consensus among analysts, with targets ranging from $58 to $105. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

The firm highlighted Block’s Cash App Card post-purchase Buy Now, Pay Later (BNPL) feature as a key driver for potential upward estimate revisions. This feature, which launched in February 2025, allows users to split past purchases into installments.

UBS noted that Cash App’s post-purchase BNPL offering has "ramped rapidly" since its launch, with performance metrics surpassing those of Cash App Borrow during comparable periods, demonstrating better attach rates and lower loss rates.

The research firm expects this offering to drive card volumes, increase primary banking active users, and boost monetization through both direct and indirect channels as the feature continues to scale.

UBS’s analysis suggests the post-purchase BNPL product could contribute a mid-single-digit to high-single-digit percentage to Block’s earnings per share growth in 2026 and 2027, according to the firm’s estimates. The company has demonstrated strong momentum, with a 52.81% price return over the past six months. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis for Block through InvestingPro’s detailed research reports.

In other recent news, Block Inc. has garnered attention with several notable developments. The company announced significant updates to its Square AI assistant, enhancing it with local data insights for small businesses. This upgrade allows merchants to integrate weather, events, news, and reviews data with their business metrics, aiding in decisions related to inventory and staffing. Additionally, Square launched a new platform called Square Bitcoin, enabling small businesses to accept bitcoin payments with zero processing fees for the first year. This platform includes features for bitcoin payments, conversions, and wallet management, all integrated into the Square Dashboard.

Block Inc. also maintained its Buy rating from Jefferies, with a price target of $90.00, despite a decrease in job listings for sales roles in September. The firm suggested this might indicate the end of a hiring wave, which could support future growth in U.S. Gross Payment Volume. Meanwhile, TD Cowen reiterated its Buy rating on Block, setting a price target of $95.00, emphasizing the company’s innovation and product development. Lastly, Katz’s Delicatessen has partnered with Square to modernize its operations while preserving its traditional offerings, implementing Square’s technology across its locations and digital sales channels.

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