Block price target lowered to $85 from $95 at Macquarie

Macquarie lowered the firm’s price target on Block to $85 from $95 and keeps an Outperform rating on the shares. The company’s Q3 adjusted EBITDA result came in 26% above consensus and seemed to crystalize the intent and feasibility on the part of the management and its teams to make the pivot after a couple quarters of speaking to goals but not seeing as much progress reflected in the guides, the analyst tells investors in a research note. The firm warns however that Block may have to contend with a shifting U.S. consumer and merchant landscape on macro headwinds that for some cohorts are having a noticeable impact such as reduced savings, persistent inflation, and hence pressured household finances.