Needham raises Block stock price target to $100 on strong growth

Published 08/08/2025, 13:08
Needham raises Block stock price target to $100 on strong growth

Investing.com - Needham has raised its price target on Block Inc. (NYSE:XYZ) to $100.00 from $80.00 while maintaining a Buy rating following the company’s second-quarter results. The new target aligns with the broader analyst sentiment, as InvestingPro data shows analyst targets ranging from $35 to $105, with 9 analysts recently revising their earnings estimates upward.

Block reported strong growth in its Square segment, driven by both retail and mid-market customers, along with better-than-expected growth in Cash App, fueled by Borrow, Card, and Buy Now, Pay Later services.

The company introduced a better-than-expected third-quarter outlook and significantly raised its full-year 2025 guidance, projecting a strong second half due to an improved macroeconomic backdrop and building momentum across its product portfolio.

Needham noted that Block’s execution remains sound with steady international momentum and ongoing product roll-outs serving as growth tailwinds for the company.

Block shares are expected to open approximately 6% higher following the stronger outlook, trading at roughly 12 times enterprise value to fiscal year 2026 EBITDA.

In other recent news, Block Inc. reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company missed analyst expectations with earnings per share of $0.62, falling short of the forecasted $0.67, and reported revenue of $6.05 billion, which was below the anticipated $6.27 billion. Despite these misses, Block raised its fiscal year 2025 guidance, which contributed to positive sentiment among investors. KeyBanc raised its price target for Block to $100 from $60, maintaining an Overweight rating after the earnings report. Morgan Stanley (NYSE:MS) adjusted its price target to $77 from $73, maintaining an Equalweight rating due to updated valuation models. Piper Sandler also raised its price target to $58 from $50, maintaining an Underweight rating despite Block’s earnings miss by one cent. These recent developments highlight a varied response from analysts, reflecting differing perspectives on Block’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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