Oppenheimer analyst Rayna Kumar lowered the firm’s price target on Block (XYZ) to $85 from $92 and keeps an Outperform rating on the shares. The firm notes Block reported mixed Q3 results. Gross profit and adjusted op. income exceeded expectations, driven by 24% growth from Cash App GP, while adjusted EBITDA fell short. Losses from transactions/loans/receivables rose to 14% of GP, from 8.5% in 3 2024, due to growth in Cash App Borrow and post-purchase Buy Now, Pay Later. While investors had anticipated stronger contribution from Square and remain cautious on lending-driven growth, Oppenheimer continues to view Block favorably.
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Read More on XYZ:
- Block price target lowered to $86 from $94 at BofA
- Block price target lowered to $90 from $95 at Keefe Bruyette
- Block price target lowered to $55 from $58 at Piper Sandler
- Block price target lowered to $71 from $77 at Morgan Stanley
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