Block price target lowered to $74 from $103 at Raymond James

Raymond James analyst John Davis lowered the firm’s price target on Block (XYZ) to $74 from $103 and keeps an Outperform rating on the shares. While Block’s Q1 results featured a 4% adjusted EBITDA beat, gross profit was 1% shy of Street estimates, with downside to gross profit dollars driven by Cash App, the analyst tells investors in a research note. While management noted that 2025 guidance accounts for incremental conservatism, it still implies a 500 basis point acceleration in gross profit dollar growth in the second half of the year, which the firm expects to be met with skepticism.