Block probe report includes ‘little incremental’ news, says Jefferies

Jefferies analyst Trevor Williams notes that NBC News reported federal investigators are probing Block’s compliance practices in response to whistleblower claims, but the analyst argues that “today’s article largely repeats claims featured in a Feb. article by the same author.” While stating that the firm is “not dismissive of the claims, today’s reaction seems overdone” given limited new info and the firm views the timing of the article in front of Thursday’s earnings report as “somewhat curious,” noting that the February article was also published within a week of Q4 earnings. The firm has a Buy rating and $100 price target on Block shares.