Block ‘too inexpensive’ into GAAP profitability pickup, says Barclays

Barclays analyst Ramsey El-Assal keeps an Overweight rating on Block with a $95 price target, saying the stock is “still too inexpensive.” While the Street remains focused on cyclical Seller trends, the company’s upcoming “rapid increase in GAAP profitability will draw in many new investors,” the analyst tells investors in a research note. The firm believes Block will achieve 16% 2025 GAAP operating margin versus the Street’s estimate of 8%, implying a 22-times GAAP price-to-earnings ratio. This is a “low price to pay for a growth-focused, innovation leader,” contends Barclays.