Key insights
- Evercore ISI reiterated its Outperform rating on Block (XYZ) with a $96 price target ahead of Q1 earnings on May 7. The firm anticipates continued fundamental improvements in Square and Cash App. Key areas to monitor include Cash App consumer origination volume, transaction/loan loss growth, and Square's net value-added growth. The release of Square Managerbot, an AI-enabled business intelligence agent, is a notable positive development. The report suggests a slightly bullish outlook for Block's near-term performance.
Investing.com - Evercore ISI reiterated an Outperform rating and $96.00 price target on Block Inc. (NYSE:XYZ), trading at $71.81 with a market cap of $42.8 billion. The firm expects the company to show continued fundamental turnaround progress at both Square and Cash App when it reports first-quarter results on May 7, just three days away. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts maintaining a Buy consensus and the company having delivered a strong 54% return over the last year.
The firm noted that first-quarter results will include severance-related costs from the 40% headcount reduction announced in the fourth quarter. Evercore ISI expects Cash App Borrow loan losses to remain within guided ranges for the year but may increase slightly during the quarter.
The firm said a higher loss rate would likely be due to an increase in new customers, which carry higher losses but also lower loan value as they build credibility. Evercore ISI does not expect any material revisions to the fiscal 2026 guidance as updated expectations were provided on the fourth-quarter call.
The most significant development since the firm’s initial preview was the release of Square Managerbot, Block’s AI-enabled business intelligence agent for Square sellers. Managerbot is designed to help Square’s small and medium-sized businesses optimize workflows, look for inefficiencies and actively monitor the business. InvestingPro subscribers have access to 11 additional exclusive tips about Block, plus comprehensive Pro Research Reports that transform complex financial data into actionable intelligence for smarter investing decisions.
Evercore ISI said key details to watch include Cash App consumer origination volume growth, growth of transaction and loan losses and color on the relative contribution of Cash App Borrow, and Square net value added growth relative to the fourth-quarter print of 29% year-over-year.
In other recent news, Block Inc. has seen several updates from financial analysts regarding its stock ratings and price targets. BofA Securities raised its price target for Block to $100, maintaining a Buy rating, with a focus on AI-driven efficiency gains and workforce reductions contributing to operating leverage. Cantor Fitzgerald also increased its price target to $88, citing expectations that Block will surpass first-quarter earnings estimates due to favorable consumer spending and economic conditions. Meanwhile, UBS reiterated its Buy rating with a $90 price target, following a company Q&A session that highlighted leadership’s focus on design.
BMO Capital initiated coverage on Block with a Market Perform rating and a $74 price target, noting improvements in Block’s operating model and cost structure. Beyond analyst evaluations, Birch Coffee has opened its twelfth location in New York City, utilizing Block’s Square platform to manage its operations. Birch Coffee reported a 16% year-over-year growth in 2025, reflecting the platform’s impact on its business. These developments underscore Block’s evolving position in the market and its ongoing business activities.
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