Block price target lowered to $77 from $82 at Needham

Needham lowered the firm’s price target on Block to $77 from $82 but keeps a Buy rating on the shares. The company reported “mixed” Q3 results, with macro pressures weighing on transaction revenue but margins coming in above expectations and driving a bottom line beat, the analyst tells investors in a research note. Despite the strong after-hours rally, Block shares are expected to open at an enterprise value to expected forward EBITDA multiple of 9.5x, which is “inexpensive for a secular grower in the payments landscape”, the firm added.