Block price target lowered to $70 from $85 at Truist

Truist lowered the firm’s price target on Block to $70 from $85 and keeps a Buy rating on the shares as part of a broader research note previewing Q3 earnings in FinTech. Many of the firm’s covered names are slumping, and while broadly constructive, Q3 results may not be catalysts for some of its “favorite laggard ideas”, the analyst tells investors in a research note. Truist also believes that the challenges, including competition, commoditization, price pressure, and investments needed to move up-market and into more complex SMBs will not quickly abate. The firm adds however that the fears around the demise of the Square ecosystem are materially overstated, even though it sees Block struggling to transition its sales organization to address more complex and vertical market merchants in a competitive market requiring more sophisticated field sales and support.