Block pullback creates ‘particularly attractive opportunity,’ says BofA

BofA analyst Jason Kupferberg notes that Block shares have underperformed the S&P 500 by about 1,200 basis points year-to-date, which creates a “particularly attractive opportunity” as the firm thinks that in-line Q1 gross profit with 2024 guidance reiterated, coupled with some adjusted EBITDA upside flowed through to full year, would be a positive catalyst for the stock. The firm, which expect in-line or better Q1 results and believes Q2 estimates “seem reasonable,” has a Buy rating and $93 price target on Block shares.