Block upgraded to Outperform from Market Perform at BMO Capital

BMO Capital upgraded Block (XYZ) to Outperform from Market Perform with a price target of $89, down from $100. The firm sees an attractive entry point following the post Q4 earnings selloff. Street estimates now have less downside risk, while investor sentiment and positioning are more balanced, the analyst tells investors in a research note. BMO believes expectations for Block’s Cash App’s gross profit growth appear more achievable, with higher spend now contemplated in estimates. It sees potential for sentiment to improve through 2025 as Cash App accelerates profit growth. Block’s valuation is attractive at current levels, especially if estimates have “indeed bottomed,” contends BMO.