Morgan Stanley downgraded Block to Underweight from Equal Weight with a price target of $60, down from $62. The firm’s demographic analysis suggests high market penetration and limited additional opportunity to expand banking and credit services for Block’s Cash App. Meanwhile, the analyst anticipates challenges to improving Square Seller growth. The market believes that Block can rapidly expand margins, primarily through cost cuts, while driving durable high-teens gross profit growth in Cash App and reaccelerating Square Seller volume growth, the analyst tells investors in a research note.
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