Block price target raised to $100 from $95 at Wolfe Research

Wolfe Research raised the firm’s price target on Block to $100 from $95 and keeps an Outperform rating on the shares after analyzing the company’s direct deposit opportunity. The firm sees potential for 1%-2% upside to overall gross profit in fiscal 2024 and a 4% boost to profits in fiscal 2025, driving conviction in a higher multiple. Wolfe believes Cash App has the potential to show an inflection near-term, driven by the rollout of more coveted banking products like overdraft protection and high yield savings accounts in addition to improving the company’s go-to-market strategy. Checks suggest that the company saw strong sign-ups for direct deposit following the launch of overdraft protection, and these trends will continue, the analyst tells investors in a research note.