Block Positioned for Growth: Analyst Recommends Buy Rating Due to Strong Market Position and Strategic Initiatives

Block (XYZ – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Jason Kupferberg from Bank of America Securities maintained a Buy rating on the stock and has a $115.00 price target.

Jason Kupferberg has given his Buy rating due to a combination of factors that highlight Block’s strong position in the payments industry. The company, formerly known as Square, is well-situated to benefit from a favorable macroeconomic environment for U.S. small and medium-sized businesses (SMBs). Kupferberg anticipates an improvement in Block’s Square GPV metric in the fourth quarter, with a more significant acceleration expected in 2025, which could drive the stock’s performance. Furthermore, the company’s preliminary guidance for 2025 suggests a promising blend of revenue growth and profitability, positioning it as a leader among large-cap payment firms.
Additionally, Kupferberg points to the new strategic initiatives under CEO Jack Dorsey and Head of Sales Nick Molnar, focusing on product innovation and expanded distribution partnerships, as key factors supporting this rating. The combination of gross profit growth and profitability justifies a higher valuation, and Block is currently trading at a discount compared to its peers despite strong execution. Overall, the expectations for a modest acceleration in the fourth quarter and the potential for Block to achieve its Rule of 40 target ahead of schedule support the positive outlook and Buy rating.

According to TipRanks, Kupferberg is a 2-star analyst with an average return of 0.1% and a 55.78% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Shift4 Payments, Block, and Accenture.

In another report released on January 28, Bernstein also maintained a Buy rating on the stock with a $120.00 price target.