Block Eyes Strong Growth, Anticipates Q1 Wins and Expands Ambitions for 2024: BofA Analyst
Portfolio Pulse from Anusuya Lahiri
BofA Securities analyst Jason Kupferberg reiterated a Buy rating on Block, Inc (NYSE:SQ) with a price target of $93, citing underperformance ahead of Q1 earnings as a compelling opportunity. Expectations for in-line Q1 gross profit and potentially exceeding adjusted EBITDA forecasts are set, with potential for significant multiple expansion if Square meets its 2026 "Rule of 40" targets. Kupferberg expects in-line+ Q1 results, reasonable Q2 estimates, and potential for upward revision in profitability outlook for 2024. Critical metrics for Square and Cash App, including gross payment volume, international growth, monthly active users, and monetization rates, will be closely monitored. SQ shares traded higher by 1.99% at $71.82.
April 22, 2024 | 6:24 pm
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POSITIVE IMPACT
Block, Inc (NYSE:SQ) receives a reiterated Buy rating from BofA Securities with a price target of $93, highlighting potential for Q1 earnings to exceed expectations and setting ambitious growth targets for 2024.
The reiterated Buy rating and optimistic outlook for Q1 earnings and 2024 growth targets by a reputable analyst could lead to increased investor confidence in SQ, potentially driving the stock price up in the short term. The specific mention of in-line Q1 expectations, potential for exceeding adjusted EBITDA forecasts, and ambitious growth targets for 2024, along with the current share price movement, supports a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100