BMO Capital downgraded Block (XYZ) to Market Perform from Outperform with a price target of $58, down from $80. The firm believes Block’s anticipated gross profit growth acceleration may still have risk and it worries that the recent slowdown at Cash App may be indicative of a lower baseline growth rate going forward, the analyst tells investors. The firm is now less confident in the medium-term growth potential for Cash App, adding that it had previously underestimated the lack of flexibility and conservatism built into Block’s 2025 guidance.
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