Block Inc. (SQ:NYE) 7 Analysts raise targets on positive earnings

Block Inc. (SQ:NYE) Analyst Rate as a Consensus "Strong Buy"

Block Inc. Stock Forecast:

According to predictions from 32 analysts regarding Block Inc‘s stock, the average analyst target price for the company over the next year is USD 86.65. The average analyst rating for Block Inc is Strong Buy. Stock Target Advisor has conducted its own analysis of the company’s stock and has determined that it is Slightly Bullish based on 6 positive signals and 5 negative signals. Currently, Block Inc’s stock price is USD 74.15, which has decreased by -5.70% in the past week, -9.20% in the past month, and -16.42% over the last year.

Analysts Coverage Change:

  • Morgan Stanley & Co. maintains Block Inc. with an Equal-Weight rating and raises the price target to $72 from $67.
  • Wells Fargo & Company maintains an Overweight rating and raises the price target to $105 from $96.
  • Wolfe Research maintains an Outperform rating and raises the price target to $95 from $80.
  • Robert W. Baird & Co. maintains an Outperform rating and raises the price target to $92 from $85.
  • Credit Suisse Group maintains an Outperform rating and raises the price target to $105 from $95.
  • Needham & Company maintains a Buy rating and raises the price target to $95 from $80.
  • Evercore ISI Upgrades Block Inc. (SQ:NYE) to an In-Line  rating from Underperform, and raises the price target to $80 from $51.

Block Inc. News:

On February 23, 2023, Block, formally know as Square, reported its fourth-quarter earnings for 2022, which resulted in its stock rising nearly 8% in after-hours trading. While the company’s earnings missed Wall Street expectations, it showcased impressive growth in gross profit.

Block’s EPS was reported at 22 cents, adjusted, which missed the expected 30 cents. The revenue, on the other hand, came in at $4.65 billion, beating the expected $4.61 billion. The company’s gross profit for the quarter was $1.66 billion, up 40% from the previous year, surpassing the expected $1.53 billion.

Analysts often rely on gross profit as it provides a better indication of the company’s core transactional businesses. The company recorded a non-adjusted net loss of $114 million or 19 cents per share during the quarter.

The company’s Cash App business reported $848 million in gross profit, indicating a 64% year-over-year rise. The app had 51 million monthly transacting actives, increasing by 16% year-over-year in December 2022. Its Cash App Card generated over $750 million in gross profits in 2022, up by 56% from the previous year.

Square’s point-of-sale business also witnessed a 22% annual increase in gross profit to $801 million. Prior to the after-hours stock surge, the stock had already increased by more than 15% in 2023.

In conclusion, while the company’s earnings missed Wall Street expectations, it demonstrated a remarkable increase in gross profit, particularly in its Cash App business. This result led to a positive market reaction, with the company’s stock rising during extended trading hours.

 

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