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BMO Positive On Block Due To Outlook For Cash App and Afterpay -Breaking

by Mike Robinson

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© Reuters

Sam Boughedda

Investing.com — James Fotheringham from BMO upgraded Block Inc shares (NYSE:) to Outperform Market Perform on Monday.

Analysts have set a $159 price target for Block, a financial services and digital payment company. This would indicate a possible 33% rise in value from the time the announcement was made. Block shares, previously known as Square rose 4.6% Monday.

Fotheringham wrote to clients that Block is expected “to surprise positively” in terms of growth and earnings. 

An analyst’s out-year outlook gives him a better view of the company. He believes that Cash App will have a “softer landing (faster user growth, broader product marketing), higher afterpay accretion to revenues growth (+2%), and lower earnings (+4 %).”).

Analyst added, “We are looking forward to getting guidance about the potential synergies that SQ’s acquisition of Afterpay will bring to the table and also the benefits SQ’s Merchant-facing Square business being connected to its Consumer-facing Cash App via BNPL.”

Fotheringham cited the Investor Day of May 18 by the company as an opportunity to stimulate the stock.

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