Keep an eye on Block Inc. (SQ).
Since the year began, it’s been consolidating around $67 a share. From here, we’d like to see it initially refill its bearish gap around $77.50. Not only is Jefferies bullish on the SQ stock, but so are BTIG and Wedbush analysts.
At BTIG, analysts have a buy rating, with an $85 price target. They noted, “they see Block’s growth opportunities paired with management’s focus on the bottom-line as presenting an attractive investment opportunity with the stock trading at ~17x fiscal year 2024 estimated enterprise value to adjusted earnings before interest, taxes, depreciation, and amortization (EV/adjusted EBITDA),” as quoted by Investing.com.
At Wedbush, analysts have an outperform rating. “We now have increased conviction in the company’s ability to post improving performance in its weak merchant segment,” they said. “In addition to management’s important (positive) decision last quarter to run the company with strict financial discipline and focus on GAAP earnings, we believe accelerating growth in the merchant segment is another important catalyst for the stock’s performance.”
