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Block assumed with an Outperform at BMO Capital

BMO Capital analyst Rufus Hone assumed coverage of Block with an Outperform rating and $84 price target. The firm sees durable gross profit growth across both Cash App and Square Seller over the medium-term, as well as “much greater urgency around margin improvements.” While it sees significant execution risk in achieving Block’s 2026 targets, BMO believes there could be a series of “quick wins” for Block to capture on the cost side, which would benefit sentiment in the near-term, the analyst tells investors.

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