Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Piper Sandler initiated coverage on Block Inc. (NYSE:SQ) with an underweight rating and a $50.00 price target on Tuesday.
The research firm cited "persistent deceleration of Cash App user growth and mounting competition across business lines" as key factors behind its cautious stance on the financial technology company.
Piper Sandler noted that Block’s current valuation appears depressed compared to both its historical average and industry peers, but argued this lower valuation "is warranted" given the company’s challenges.
The firm specifically highlighted headwinds to user growth for Block’s Square business unit, pointing to "maturation of upmarket customers as a percentage of Square’s total volume" as a limiting factor for future expansion.
Increasing competition from smaller point-of-sale competitors was also identified as a significant concern for Block’s growth prospects across its various business segments.
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