Block shares ‘overreacting’ to short seller report, says BofA

BofA notes that yesterday’s short seller report targeting Block and says "the vast majority" of the report focuses on fraudulent Cash App accounts, use of Cash App for illegitimate activity, and the words "Cash App" being included in lyrics of multiple rap songs. While the firm thinks the report likely creates a near-term overhang for shares, its initial reaction is that shares are "likely oversold" and BofA reiterates its Buy rating and $96 price target on shares of Square’s parent.