Block price target raised to $90 from $85 at Mizuho

Mizuho analyst Dan Dolev raised the firm’s price target on Block to $90 from $85 and keeps a Buy rating on the shares. The firm’s analysis suggests Block’s updated gross profit and operating expenditure guidance combined implies an adjusted EBITDA floor of $1.6B for 2023, or 7% ahead of $1.5B EBITDA guide. Although $1.6B should be the floor, any further upside from better than expected profit should flow through directly to EBITDA, which suggests potential further upside to the $1.6B, the analyst tells investors in a research note. The firm cites a more favorable EBITDA outlook for the target raise.