Block (NYSE:SQ) shares have not had the best year in 2023. Nevertheless, Bank of America analyst Jason Kupferbeg insists that the recent price performance does not reflect the company’s potential upside. In a note to investors, Kupferberg maintained his Buy rating on the financial service and mobile payments company, which caused shares to jump at the time of writing.
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Since the start of the year, the stock has shed 28.93% of its price, although it has gathered some momentum recently. The decline took the stock value close to a historically low valuation of 2.9 times Kupferberg’s 2024 enterprise-value-to-EBITDA estimate. However, Kupferberg argued that the recent price correction on the stock price is “unjustified.”
According to the analyst, the recent decline in consumer spending and investors’ exits prompted by higher interest rates caused the drops. He added that these factors could also affect the company’s Q3 gross profit estimates. To kickstart a recovery, Kupferberg urged the company’s Board to increase operational oversight and double down on product innovativeness.
Will Block Stock Go Up?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SQ stock based on 24 Buys, six Holds, and zero Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average SQ price target of $81.11 per share implies a 76.02% upside potential.
