Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Block. The associated price target was lowered to $80.00.
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Mayank Tandon has given his Buy rating due to a combination of factors that suggest a favorable risk-reward scenario for Block’s stock. Despite the mixed third-quarter results where the company exceeded expectations in gross profit but fell short on the bottom line, the core business remains robust. The miss on the bottom line was primarily attributed to increased costs from a new processing partner and higher expenses.
However, Block provided a positive outlook for the fourth quarter and raised its full-year guidance, indicating confidence in its ongoing operations. The company saw strong performance in its Gross Payment Volume, particularly in the retail and food and beverage sectors, and its Cash App showed a 24% year-over-year increase in gross profit. With the stock experiencing a significant sell-off and trading at a reasonable valuation, Tandon views this as an opportunity, maintaining a Buy rating while adjusting the price target to $80.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $91.00 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.