Block heading into 2023 with momentum, says Deutsche Bank

Deutsche Bank analyst Bryan Keane says Square is heading into the new year with momentum. Even as market volatility and concerns surrounding macro headwinds have weighed on the stock, the company’s fundamental trajectory is positive heading into fiscal 2023, Keane tells investors in a research note. He believes Block will continue "pulling levers" to drive margin expansion as the company increases focus on reining in spending while still investing for long-term growth. Keane sees fiscal 2023 upside potential to adjusted EBITDA margins to 21% versus his current expectations of 17%. He reiterates a Buy rating on Block shares.