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Investing.com - BTIG raised its price target on Block Inc. (NYSE:XYZ) to $80.00 from $70.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report scheduled for Thursday. Currently trading at $75.29, Block has attracted strong analyst support, with InvestingPro data showing eight analysts recently revising their earnings estimates upward. The analyst consensus price target ranges from $35 to $105.
Despite Block stock rallying over 60% since its first-quarter 2025 report, BTIG believes the company remains an attractive investment based on growth initiatives, reasonable valuation at 14x FY25E EV/EBITDA, and continued margin expansion. With a market capitalization of $45.93 billion and a P/E ratio of 17.75, Block appears undervalued according to InvestingPro’s Fair Value analysis.
The research firm noted that the market has given Block a pass for its 7% Cash App growth in March, which the company described as a one-off event, as growth returned to 13% in April.
BTIG suggests that guidance for the remainder of fiscal year 2025 is derisked and sees potential upside to estimates as Square product velocity increases and Cash App refocuses on monthly active user growth alongside engagement metrics.
The firm has increased its second-quarter 2025 Cash App estimates after an initially conservative outlook, now expecting second-quarter 2025 gross profit growth of 10.7% compared to the Street consensus of 9.4%.
In other recent news, Block Inc. has been the focus of several analyst updates and product developments. Morgan Stanley (NYSE:MS) downgraded Block from Overweight to Equalweight, maintaining a price target of $73, citing the stock’s recent rise as reaching a fair valuation. Conversely, Wolfe Research reiterated an Outperform rating with a price target of $95, emphasizing Block’s innovation and technological differentiation as factors for potential market share gains. Bernstein SocGen Group also raised its price target for Block to $90, noting the company’s upcoming inclusion in the S&P 500 as a catalyst for increased investor interest.
On the product front, Block’s Cash App has introduced a new "pools" feature to facilitate group payment collections, allowing multiple contributors to chip in using various payment methods. This new feature aims to simplify the process of managing shared expenses without requiring one person to cover the entire cost upfront. These developments come as Block continues to focus on expanding its technological capabilities and market presence.
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