Block: Truist Securities raises Sell PT to $65 from $61.

Block: Truist Securities raises Sell PT to $65 from $61.

In a significant update to its financial analysis, Truist Securities has raised its price target for Block Inc (XYZ) to $65 from the previous $61, while maintaining a Sell rating on the stock. This adjustment comes ahead of the second-quarter earnings for the FinTech sector, which is expected to feature discussions about cryptocurrencies and stablecoins [1].

The updated price target reflects a 45.79% upside from the current price of $69.03, according to the average one-year target price of $100.64 set by 40 analysts. Despite the challenges faced by the FinTech industry, which has seen only a 2% year-to-date increase compared to the S&P 500's 6% gain, Truist remains optimistic about the sector's outlook [1].

In the first quarter of 2025, Block Inc reported a total gross profit of $2.29 billion, marking a 9% year-over-year increase. Square demonstrated strong performance with a 9% year-over-year gross profit growth, driven by a 7.2% GPV growth. The company also achieved its highest adjusted operating income and adjusted EBITDA ever, with adjusted EBITDA up 15% year-over-year [1].

However, the company faced challenges with Cash App's gross profit, which came in below expectations due to changes in consumer spending behavior, particularly during the tax refund season. Additionally, Block Inc lowered its full-year adjusted operating income guidance, reflecting a more conservative approach due to macroeconomic uncertainties [1].

Despite these challenges, Truist Securities believes that Block Inc's strategic investments in AI and product innovation, with plans to showcase over 100 new products and features, will drive future growth. The company's FDIC approval to use Square Financial Services for issuing consumer loans is also expected to significantly enhance unit economics and expand the Cash App Borrow offering [1].

In conclusion, while Truist Securities has raised its price target for Block Inc (XYZ) to $65, the Sell rating indicates a cautious outlook. Investors should closely monitor the company's earnings calls and strategic developments to assess the potential impact on the stock's performance.

References:
[1] https://www.gurufocus.com/news/2984171/truist-adjusts-price-target-for-block-xyz-ahead-of-earnings-xyz-stock-news