Key insights
- Truist Securities raised its price target for Block Inc. (SQ) to $82, citing improved profit outlooks for both Square and Cash App segments. The firm increased gross profit and adjusted EPS estimates, expecting Block to exceed guidance throughout the year. This positive revision, aligning with other analysts, suggests potential upside for the stock, driven by strong performance and growth acceleration in key business units.
Investing.com - Truist Securities raised its price target on Block Inc. (NYSE:XYZ) to $82 from $81 on Tuesday while maintaining a Buy rating on the shares.
The firm revised its financial model for Block following the company’s first-quarter 2026 results. Truist increased its gross profit estimates in the low single-digit percentage range, driven by higher forecasts for both Square and Cash App segments.
Square gross profit forecasts rose 1%, while Cash App gross profit estimates increased 4% to 5%. Adjusted operating income and adjusted earnings per share forecasts both increased in the mid-single-digit percentage range.
Truist said management appeared prudent when establishing guidance and expects Block to beat and raise forecasts throughout the year. The firm also anticipates Square gross profit growth to accelerate during 2026.
The $82 price target is based on 15 times Truist’s 2027 adjusted earnings per share forecast, compared with an expectation for 24% year-over-year earnings growth in 2028, representing a 0.6 times price-to-earnings-growth ratio.Truist’s optimism aligns with broader analyst sentiment. According to InvestingPro data, 24 analysts have revised their earnings upwards for the upcoming period, while the stock currently trades at a P/E ratio of 52.37. The platform’s Fair Value analysis suggests Block remains undervalued at current levels. For deeper insights, investors can access Block’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.
In other recent news, Block Inc. has been the focus of several analyst reports and product announcements. Raymond James raised its price target for Block to $90, citing strong first-quarter results, including an 18% beat on adjusted operating profit and a 4% beat on gross profit compared to consensus estimates. Canaccord Genuity also increased its price target to $85, highlighting Cash App’s 38% gross profit growth and improved monetization. Similarly, Bernstein SocGen Group reiterated an Outperform rating, noting Block’s four consecutive quarters of beat and raise results and projecting significant EPS and gross profit growth by 2026.
In addition to analyst updates, Square, a part of Block Inc., announced the launch of Square for Drive-Thru. This new solution aims to streamline order processing for quick-service restaurants by integrating order capture, kitchen operations, and customer handoff. The product was developed in collaboration with The Howard Company and Nanonation. Meanwhile, Evercore ISI reiterated an Outperform rating with a $96 price target, expecting continued progress in both Square and Cash App, despite potential increases in Cash App Borrow loan losses.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.