DexCom earnings beat by $0.03, revenue topped estimates
On Wednesday, UBS analysts reaffirmed their Buy rating and maintained a $70 price target for Block Inc. (NYSE: XYZ), currently trading at $63.51. According to InvestingPro analysis, the stock appears undervalued, with a P/E ratio of 15.05 and strong financial health score. The decision reflects their continued confidence in the company’s evolving product ecosystem, including recent expansions like Cash App Pay and Cash App Borrow.
The UBS team provided an updated framework for understanding Block’s Square and Cash App ecosystems. This includes detailed descriptions and modeling frameworks for transaction-based and subscription & services revenue within these ecosystems.
The analysts also shared insights into Block’s sales and marketing expense components. They emphasized using various disclosures to refine their product-level builds, which are available for review upon request.
UBS’s comprehensive analysis aims to guide investors through the complexities of Block’s product segments and revenue streams, underscoring the firm’s positive outlook on the company’s future performance.
In other recent news, Block Inc. has been the focus of several analyst updates and strategic developments. Block reported an upgrade from Evercore ISI, which raised the stock rating to Outperform and increased the price target to $75, citing growth prospects and moderated concerns about Cash App lending. Jefferies also adjusted its price target for Block to $75, maintaining a Buy rating, highlighting a strategic focus on expanding sales roles to enhance market reach. Raymond (NSE:RYMD) James increased its price target to $79, driven by positive management comments and projected growth in Cash App Borrow’s gross profit.
Conversely, Truist Securities initiated coverage with a Sell rating and a price target of $60, expressing concerns over Block’s sensitivity to macroeconomic conditions and potential credit losses from its lending products. In addition to these analyst actions, Block announced a significant development with the integration of bitcoin payments on its Square platform. This integration, set to roll out in the second half of 2025, will allow merchants to accept bitcoin through the Lightning Network, offering swift and low-cost transactions.
The move is part of Block’s broader strategy to enhance bitcoin’s role in economic empowerment, further supported by features like Bitkey and Proto. These developments reflect a mix of optimism and caution among analysts and investors regarding Block’s strategic direction and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.