Analyst Bryan Bergin from TD Cowen maintained a Buy rating on Block (XYZ – Research Report) and decreased the price target to $69.00 from $115.00.
Bryan Bergin has given his Buy rating due to a combination of factors that highlight both challenges and potential within Block’s operations. Despite recent disappointments in execution and forecasting, particularly with the Cash App, Bergin sees value in the company’s low valuation and the potential for growth through strategic initiatives. The firm has embedded more prudence and refined its priorities, focusing on re-accelerating growth through Cash App Borrow, Buy Now Pay Later (BNPL), and Square initiatives.
Bergin acknowledges the company’s differentiated ecosystem and innovative assets, which, despite current setbacks, offer optionality for future growth. The focus on Cash App as a key growth driver underscores the belief in its potential as a fundamentally differentiated fintech solution. While the company’s outlook has been adjusted conservatively, the management’s efforts to clarify organizational priorities and support growth initiatives provide a basis for maintaining a positive stance on the stock.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 103 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.