Block (XYZ – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Trevor Williams from Jefferies maintained a Buy rating on the stock and has a $60.00 price target.
Trevor Williams has given his Buy rating due to a combination of factors that suggest potential for growth despite recent challenges. While the Cash App has faced setbacks, particularly with lower-than-expected inflows during the tax season, these issues are seen as temporary and related to broader macroeconomic conditions rather than fundamental flaws in the business model. Williams notes that the management’s revised guidance for the second quarter and full year has significantly reduced risk, as it accounts for potential macroeconomic weaknesses beyond what has been observed.
Additionally, Square, a key component of Block’s business, has shown promising signs of progress. The narrowing gap between Square’s US gross payment volume growth and that of competitors like Visa and Mastercard indicates improved performance, particularly in mid-market segments. Encouraging returns from field sales efforts and accelerated hiring plans further support the potential for market share gains. With expectations for continued growth in gross payment volume and gross profit, Williams believes that Block is well-positioned for future success, justifying the Buy rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $69.00 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.