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Block Stock Jumped 6% in Morning Trading after BofA and Citi Buy Rating

Tiger Newspress2022-02-11

Block stock jumped 6% in morning trading after BofA and Citi Buy ratingBofA analyst Jason Kupferberg upgraded to Buy from Neutral with a price target of $185.00 per share, down from $221.00. The analyst sees a discount in shares as the market is undervaluing the Cash App value.

“Following big underperformance in shares of SQ, we conducted a sum-of-the-parts (SOTP) analysis, which suggests the market is currently ascribing only ~$6.5B of value to Cash App, or ~$93 per annual active user vs. PYPL at $326 and AFRM at $1,472. Shares have lagged due to a combination of the general growth sell-off and continued limited visibility on the near-term and medium-term trajectory of Cash App gross profit (GP) growth, where concerns became further heightened following PYPL’s commentary on 2/1/22 regarding weakness in post-stimulus spending among lower-income cohorts. Headlines regarding Apple’s introduction of iPhone-based card acceptance have also weighed on SQ,” Kupferberg said in a client note.

Citi analyst Peter Christiansen resumed research coverage on Block with a Buy, $220.00 price target.

“We see the SQ+APT value creation opportunity to be more than just (i) ecosystem integration or (ii) a globalization accelerant – two very powerful rationales nonetheless. For us, we see the combination expanding both the new product development canvas (TAM vectors), as well as Block’s product development capabilities (asset extensions, time-to-market, differentiation),” Christiansen wrote in the report.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment63

  • estherytwu
    ·2022-02-14
    Ok
    Reply
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  • Bspn
    ·2022-02-14
    Ok
    Reply
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  • james_l
    ·2022-02-14
    Waiting for the earnings first
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  • 3b86d9d9
    ·2022-02-13
    Good
    Reply
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  • etan000
    ·2022-02-13
    Ok
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  • Short
    ·2022-02-13
    Love it
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  • koolgal
    ·2022-02-13
    The financial gurus rate Block, previously known as Square as a Buy!  It has also acquired AfterPay in Australia recently.  Go Block! 🚀🚀🚀🌙🌙🌙
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  • Cyberboyz
    ·2022-02-13
    Ok
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  • SPOT_ON
    ·2022-02-13
    Like
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  • niboreel
    ·2022-02-12
    Ok
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  • MoneyCentral
    ·2022-02-12
    Ok
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  • Barbarazhao
    ·2022-02-12
    Good to read
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  • 来人
    ·2022-02-12
    Nice 
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  • YauDK
    ·2022-02-12
    Oh ye ye 
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  • Katchoong
    ·2022-02-12
    Roar
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  • ANNIEPLTAN
    ·2022-02-12
    Hope it will push price up next week.
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  • Roar roar
    ·2022-02-12
    [Cool] 
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  • Roarhigher
    ·2022-02-12
    Good 
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  • iamjingxian
    ·2022-02-12
    Cool
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  • ivy888
    ·2022-02-12
    Like 
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