Piper Sandler has upgraded Block's stock from underweight to overweight and raised its price target from $58 to $100, suggesting a potential upside of 27% based on Monday's closing price. Analyst Bill Carcache highlighted that the current valuation does not fully reflect Block's earnings potential, particularly as the company focuses on gross profit growth and margin expansion.
He noted that double-digit growth is achievable, supported by Square and CashApp's enhanced monetization strategies. Additionally, Block's improved expense management and anticipated efficiencies from artificial intelligence are expected to contribute to faster growth in adjusted operating income.
Over the past year, Block's shares have increased nearly 15%, aided by a favorable financial outlook and cost-cutting measures, including a significant reduction in workforce. This positive sentiment is echoed by the broader analyst community, with 38 out of 44 analysts recommending a buy or strong buy on Block's stock