From Financial Modeling Prep: 2025-02-24 12:24:00

BMO Capital analysts upgraded Block (NYSE:XYZ) from Market Perform to Outperform, setting a price target of $89, up from $100. The upgrade was based on a compelling valuation and improved growth outlook for Square and Cash App.

Following a Q4 sell-off, analysts believe downside risk in Street estimates has decreased. Expectations for gross profit growth in Square and Cash App are now more realistic, with higher expenses already factored in.

BMO Capital predicts investor sentiment could improve through 2025 due to accelerated gross profit growth in Block’s core businesses. The company’s valuation is attractive, trading below a PEG ratio of 0.7x, indicating potential upside if estimates stabilize.

With stronger growth prospects and limited downside risks, BMO Capital sees Block well-positioned for a recovery in 2025.



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