Block Inc., the parent company of Square and Cash App, is experiencing a surge in its stock price, set to achieve its best performance in 15 months. The stock was up 17% in premarket trading on Friday, and if this trend continues, it will mark the company’s best day since November 2022. Block’s recent report showcased bottom-line improvement and impressed Wall Street with its focus on efficiency.
Seaport Research analyst Jeff Cantwell praised Block’s progress over the past few months, highlighting the company’s streamlining efforts and its focus on driving profitable growth. Cantwell noted that Block’s operating leverage in the current macro environment is rare and compelling, leading him to change his investment thesis on the company. He raised his price target on the stock to buy from neutral, with a target price of $95.
Mark Palmer, an analyst at Benchmark Company, considers Block one of the most compelling stock stories in fintech. He believes that the company’s focus on controlling expense growth will have a significant impact on its profitability. Palmer is optimistic about Block’s efforts to grow its Cash App mobile wallet and attract more users to its banking services. He sees potential in Cash App serving as a bank-account substitute for unbanked and underbanked consumers, driving top- and bottom-line growth. Palmer rates the stock at buy with a target price of $89.
Harshita Rawat from Bernstein commented on Block’s progress in controlling operating expenses, comparing it to Meta’s approach. She believes this shift will attract both growth investors and those looking for growth at a reasonable price. Rawat noted that Block posted a GAAP profit in its latest quarter and trades at 20 times 2025 earnings per share, making it attractive on GAAP metrics. She also highlighted Cash App’s improved profitability and has an outperform rating on the stock with a target price of $90.
Andrew Jeffrey, an analyst at Truist Securities, believes that the market is underestimating Cash App’s potential. He argues that the view of Cash App as a peer-to-peer service focused on instant deposits to external accounts is mistaken. Instead, he points out that Cash App generates revenue through its internal banking offerings and highlighted new solutions aimed at driving greater direct deposits. Jeffrey reiterated a buy rating on the stock and raised his price target to $100.
Overall, analysts are optimistic about Block’s future performance. The company’s focus on efficiency, profitability, and the growth potential of its Cash App are driving the surge in its stock price. With positive earnings and a strong market position, Block is attracting attention from investors in the fintech space.
