Analyst Bryan Keane of Citi maintained a Buy rating on Block, retaining the price target of $105.00.
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Bryan Keane has given his Buy rating due to a combination of factors that highlight Block’s potential for growth and profitability. Despite some non-fundamental issues such as changes in processing relationships and a significant one-time expense for a company event, Keane sees these as temporary setbacks. He believes that the morale and strategic benefits from the event will yield long-term advantages. Additionally, Block’s upcoming Investor Day is expected to showcase strong guidance for 2026 and beyond, reinforcing confidence in its future performance.
Cash App’s impressive growth is a key driver for the Buy rating, with gross profit increasing by 24% year-over-year and monthly active users reaching 58 million. The profitability per user has also seen a significant rise. Furthermore, the expansion of the Borrow product has shown favorable risk-adjusted returns. Square’s Gross Payment Volume (GPV) has also grown, particularly in international markets and among larger sellers, driven by an expanded field sales team. These factors collectively support a positive outlook for Block, justifying the Buy rating.
According to TipRanks, Keane is a 4-star analyst with an average return of 6.0% and a 55.40% success rate. Keane covers the Technology sector, focusing on stocks such as Fiserv, Block, and Accenture.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $90.00 price target.