Block Inc.(SQ:NYE) Analysts rate with a Strong Buy, $205

STA Research
by: STA Research

Based on the Block Inc. stock forecasts from 34 analysts, the average analyst target price for Block Inc. is USD 205.30 over the next 12 months. Block Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Block Inc. is Neutral, which is based on 6 positive signals and 6 negative signals. At the last closing, Block Inc.’s stock price was USD 100.47. Block Inc.’s stock price has changed by -25.15% over the past week, -29.86% over the past month and -60.41% over the last year.

Just recently the target was lowered by Susquehanna Bancshares to $160 from $240, and the Positive rating was maintained.

Block, Inc., together with its subsidiaries, creates tools that enable sellers to accept card payments and provide reporting and analytics, and next-day settlement. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in San Francisco, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its ppeer’smedian on a pprice-to-bookvalue basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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