What's In Store For Block's Q4 Earnings? Analysts Spotlight On CEO Jack Dorsey's Actions To Boost Square's GPV Growth
Portfolio Pulse from Nabaparna Bhattacharya
J.P.Morgan analyst Tien-tsin Huang maintains an Overweight rating on Block, Inc. (NYSE:SQ) with a $90 target. Block's Q4 earnings are anticipated on February 22, 2024. The focus is on CEO Jack Dorsey's efforts to boost Square's GPV growth and management's commitment to cost management. Huang expects Block to set Rule of 40 targets by 2026, earlier than consensus. U.S. network volumes are expected to decelerate ~1ppt sequentially in Q4, aligning with the forecast. Severe weather in January may affect Q1 outlook, with Square GPV growth projected in the low-double digits for 2024. SQ shares dropped 0.91% to $65.04.
February 20, 2024 | 7:29 pm
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J.P.Morgan analyst maintains an Overweight rating on Block, Inc. with a $90 target, focusing on Q4 earnings, CEO's strategies for GPV growth, and cost management. Shares dropped 0.91% to $65.04.
The Overweight rating and $90 target by J.P.Morgan suggest a positive outlook for Block, Inc., indicating potential upside. However, the recent share price drop reflects short-term market reactions, possibly due to concerns over Q4 performance and future growth prospects. The focus on CEO Jack Dorsey's strategies for GPV growth and cost management, along with the anticipation of setting Rule of 40 targets by 2026, signals strong management initiatives that could positively impact the stock in the short term. The mention of decelerating U.S. network volumes and potential impacts from severe weather on Q1 outlook may introduce some caution among investors.
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