.Friday, July 18, 2024 4:50:00 PM

William Blair analysts have upgraded Block (NYSE:SQ) to Outperform from Market Perform, citing improved execution at Square, including in merchant onboarding and new vertical solutions like hospitality. CEO Jack Dorsey’s innovations, such as Tap-to-Pay on iPhone, have simplified payment acceptance. Cash App is gaining traction in the neobank space, with new revenue streams like short-term loans. Expense discipline has improved, with first-quarter 2024 EBITDA margins increasing to 33.7% of gross profit. The analysts anticipate further growth potential in Square’s distribution deals and expect the stock to re-rate higher as the company progresses towards its Rule-of-40 goal.