Analyst Gustavo Gala from Monness reiterated a Buy rating on Block (XYZ – Research Report) and keeping the price target at $75.00.
Gustavo Gala has given his Buy rating due to a combination of factors that highlight Block’s strategic positioning and growth potential. Despite a recent miss in gross profit expectations for the first quarter of 2025, Block’s ability to consistently beat EBIT/EBITDA guidance suggests a strong underlying business model. The company’s focus on enhancing product offerings and marketing, particularly through Cash App and Square, indicates a commitment to driving growth and improving operational efficiency.
Furthermore, Block’s strategic initiatives, such as banking integration with Cash App and the development of a unified app for Square, are expected to enhance user engagement and merchant services. These efforts, combined with the potential for network effects across its ecosystems, position Block favorably in the competitive landscape. Although there are short-term challenges, Gala remains optimistic about Block’s long-term prospects, particularly in terms of monetization and user growth.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $65.00 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.