Morgan Stanley upgraded Block (XYZ) to Equal Weight from Underweight with an unchanged price target of $65. The stock’s current valuation “incorporates increased skepticism” of Block’s ability to accelerate Square Seller growth, while the implied Cash App valuation is more in-line with Morgan Stanley’s assumptions given a limited demographic opportunity, the analyst tells investors in a research note. The firm cites valuation for the upgrade, saying Block’s challenges to Seller acceleration is now well appreciated while the implied Cash App valuation is more reasonable.
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