Block (XYZ) stock has slipped 1.3% over the past week but gained 4.3% in the last month, leaving shares down 4.6% over the past year. Despite this mixed performance, Wall Street’s analysts remain strongly bullish, with a 12‑month consensus price target of $100.86, implying meaningful upside from the latest close at $76.46.
James Faucette of Morgan Stanley, a 3‑star analyst ranked 3,060 out of 12,466 on TipRanks, has taken a more cautious stance. On October 26, 2026, he downgraded Block to Hold and cut his price target from $90 to $80, still above the current price but suggesting more limited upside.
Faucette argues that the near‑term growth and profitability outlook is riskier than bullish investors expect, especially after substantial margin improvement in 2026. He points to a likely slowdown in Cash App Borrow originations as Block shifts customers from four‑week to six‑week loans, creating a mechanical drag on new loan volume even if pricing improves.
The analyst also warns that longer‑duration loans could bring higher credit losses, which may curb the pace of margin expansion after recent efficiency gains. At the same time, he sees intensifying competition in Square’s small‑business offline payments and in Cash App’s credit offerings, forcing potential incremental investment that could pressure earnings.
Applying a lower 16x P/E multiple on his new 2027 adjusted EPS estimate of $5.06, Faucette’s $80 target sits roughly in line with peers on a growth‑adjusted basis and reflects his more conservative view of Block’s risk profile. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.