Block shares well positioned to rally, says Deutsche Bank

Deutsche Bank analyst Bryan Keane says the outlook for Block remains positive and the stock is well positioned to rally with “several catalysts on the horizon.” The seller business has faced challenges due to reduced discretionary spending and internal focus shifts, but the company is in the midst of a “perfect storm” across product and talent which, combined with new distribution channel partnerships and an increasingly likely soft landing, should lead to a material improvement in Square gross payment volume growth in the coming quarters, the analyst tells investors in a research note. Deutsche believes further progress in “banking the base” within Cash App and the integration of Afterpay onto the Cash Card represent additional avenues for upside into fiscal 2025. It keeps a Buy rating on the shares with a $98 price target