Block's Growth Fueled by Cash App Expansion, Square Ecosystem Focus, Says Analyst
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst Dan Dolev maintains a Buy rating on Block Inc (NYSE:SQ) and raises the price target from $99 to $106, citing potential growth from Cash App and Square ecosystems. Dolev outlines four key growth levers and projects gross profit growth could exceed 20% in 2024. Conversely, Morgan Stanley analyst James Faucette downgrades Block to Underweight with a price target of $60, citing risks to long-term growth assumptions. Despite differing views, Block's strategic focus on Cash App expansion and Square ecosystem could drive significant upside, with Block shares trading lower by 2.43% at $78.04.
April 10, 2024 | 6:14 pm
News sentiment analysis
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NEUTRAL IMPACT
ARK Fintech Innovation ETF, holding Block Inc, may see indirect impact from the mixed analyst views on Block, with potential short-term volatility.
Given ARKF's exposure to Block Inc, the ETF could experience indirect impact and potential short-term volatility due to the mixed analyst ratings on Block. However, the overall effect might be diluted across the ETF's diversified portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
ARK Next Generation Internet ETF, holding Block Inc, may face indirect short-term volatility due to differing analyst opinions on Block.
ARKW's exposure to Block Inc means it could indirectly experience short-term volatility stemming from the contrasting analyst views on Block. The impact is likely moderated by the ETF's broad investment strategy.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Block Inc's focus on Cash App and Square ecosystems, along with differing analyst views, suggests potential volatility. Dolev's upgrade contrasts with Faucette's downgrade, indicating mixed short-term sentiment.
The contrasting analyst ratings from Mizuho and Morgan Stanley create a mixed sentiment around Block Inc, potentially leading to short-term volatility. Dolev's positive outlook based on Cash App and Square growth levers contrasts with Faucette's concerns over long-term growth, making the short-term impact neutral as the market digests these differing perspectives.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100