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Mizuho upgrades Block to Buy on ‘pivot to profitability’

Mizuho upgraded Block to Buy from Neutral with a price target of $93, up from $80. The analyst applauds management’s recent commitment to cost containment and the firm’s cost analysis shows up to 30% potential upside to Block’s 2023 EBITDA guidance. In addition, Block "remains uniquely positioned" to achieve the ‘holy grail’ of creating a one-stop-shop network by connecting the point-of-sale, Cash App and buy now pay later ecosystems, the analyst tells investors in a research note. The firm says the company’s "pivot to profitability" warrants an upgrade to Buy.

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