Block Analyst Says Cash App Momentum Is 'Impressive,' Anticipates Major Upside From Expanding Banking Services
Portfolio Pulse from Surbhi Jain
Block (NYSE:SQ), also known as Square, saw its stock surge over 20% following its Q4 earnings report, which included a revenue surprise of 1.28% but an EPS miss by 23.73%. CEO Jack Dorsey highlighted cost reductions and a focus on growth. JPMorgan analyst Tien-tsin Huang maintains an Overweight rating on SQ with a $90 price target, citing strong Cash App momentum and potential from expanding banking services. Block's FY24 outlook anticipates over 15% gross profit growth, with innovations like a 'pay-as-you-go' model and bundled restaurant offerings seen as additional growth catalysts.
February 23, 2024 | 2:55 pm
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POSITIVE IMPACT
Block's Q4 earnings report showed a revenue surprise and an EPS miss, but the company's focus on growth and cost reduction, along with strong Cash App performance, has led to a positive outlook from analysts.
The positive reaction to Block's Q4 earnings, highlighted by a revenue surprise and strong Cash App performance, suggests a bullish short-term outlook. JPMorgan's Overweight rating and high price target further support this sentiment. The company's strategic focus on expanding banking services and innovative offerings like 'pay-as-you-go' models are likely to contribute to sustained interest and potential upside in the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100