SQ - What's Going On With Block Stock Thursday? | Benzinga
Block Inc (NYSE:SQ) shares were trading lower after Morgan Stanley analyst James Faucette downgraded the stock from Equal-Weight to Underweight and lowered its price target from $62 to $60.
Benchmark analyst Mark Palmer reiterated a Buy rating on Block while raising his price target to $99 from $89.
While Block’s share price has risen by more than 21% since the company reported better-than-expected fourth-quarter 2023 results on Feb. 22, a span during which the S&P 500 appreciated by 3.4%, Palmer considered that rally as an adjustment of the stock’s valuation to reflect the evolution of the company’s platform, rather than as a too-far-too-soon move.
Block’s fourth-quarter 2023 print affirmed management’s newfound focus on profitability and achieving the “Rule of 40” — gross profit growth plus adjusted operating income margin — in 2026.
Meanwhile, Block used its fourth-quarter 2023 shareholder letter to flag a significant shift in the company’s strategy; it would be redirecting investments away from the pursuit of growth in international markets and toward banking products on Cash App as part of a redoubled effort to position the app ...