Mihir Bhatia, an analyst from Bank of America Securities, maintained the Buy rating on Block. The associated price target remains the same with $94.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors that enhance Block’s platform capabilities and potential for growth. The recent product updates, including the launch of Square Bitcoin and enhancements to Square AI, are expected to make the platform more appealing to both existing and new customers. These updates are designed to increase customer interaction and engagement, thereby driving higher transaction volumes and offering new monetization opportunities through fees and take rates.
Bhatia believes that the improvements in Square AI, such as faster decision-making tools and centralized procurement capabilities, will help business owners leverage their data more effectively. Additionally, the introduction of Neighborhoods on Cash App is seen as a strategic move to integrate the Cash App and Square ecosystems, potentially increasing usage across both platforms. These developments, coupled with the attractive price objective of $94, support the confidence in Block’s ability to achieve its medium-term financial goals, justifying the Buy rating.
In another report released on October 7, Jefferies also maintained a Buy rating on the stock with a $90.00 price target.