From Barchart: 2024-12-02 12:14:00

Shares of Block (NYSE:SQ) surged over 4% as Bernstein SocGen Group analysts upped their price target to $120 from $90, maintaining an Outperform rating. Anticipated growth drivers and valuation appeal for the stock heading into 2025 were cited as reasons for the upgrade.

Key catalysts identified included an acceleration in Square’s Gross Payment Volume (GPV) and a projected 30% EBITDA growth driven by efficiency improvements. Lower regulatory scrutiny and potential S&P 500 inclusion were seen as additional tailwinds for Block’s performance.

Block’s valuation looked attractive, trading at 25x its projected 2026 GAAP price-to-earnings ratio. With 16% of its market cap in cash, the company was expected to generate $3 billion to $3.5 billion in free cash flow by 2025. The ongoing $3 billion share buyback program highlighted strong financial positioning and shareholder value initiatives.



Read more at Barchart:: Bernstein Boosts Block Price Target to $120, Stock…