William Blair analyst Andrew Jeffrey has reiterated their bullish stance on XYZ stock, giving a Buy rating on November 5.
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Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Block’s potential for long-term growth. He believes that the market’s concerns over competition in software-integrated POS systems and merchant pricing are misplaced. Square, a part of Block, is seen as a software company that stands out from its traditional competitors due to its rapid innovation and efficient distribution. Jeffrey is confident that the short-term liquidity products offered by Cash App, another Block service, represent the future of banking, addressing consumer needs that traditional banks fail to meet.
Furthermore, Jeffrey points to the encouraging growth in Square’s Gross Payment Volume (GPV), which accelerated to 12% in the third quarter, surpassing expectations. This growth, along with a significant 25% increase in international GPV, underscores Square’s strong position in the market. Despite some concerns about the gap between GPV and gross profit growth, Jeffrey notes that this is due to a temporary issue with a processor relationship, which is expected to resolve by the second quarter of 2026. Overall, he views Square as the leading SMB software-integrated solution, benefiting from the challenges faced by competitors like Clover.
In another report released on November 5, Monness also reiterated a Buy rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 122 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XYZ in relation to earlier this year.