Mizuho cuts Block target to $85 on ‘rising risks’ to narrative

Mizuho lowered the firm’s price target on Block to $85 from $93 and keeps a Buy rating on the shares. The analyst says Mizuho’s proprietary Cash App user survey "helps establish a floor for unique accounts" following last week’s short report. The survey suggests a bridge to at least 35M-40M genuine unique Cash App monthly active users, or 70%-75% of the 51M reported total active users, the analyst tells investors in a research note. While the genuine active user count is likely much closer to management’s disclosed 51M, this could only be proven via a quantitative statement from Block’s management, contends the firm. It reduced the price target saying "rising risks" to the narrative merits a lower multiple.