Mizuho Securities Changes Block Inc. (SQ) Recommendation to Neutral

Mizuho Securities analyst Dan Dolev downgraded Block Inc. (NYSE: SQ) from Buy to Neutral with a price target of $57.00 (from $125.00).

The analyst comments "After years of rightfully being deemed the most innovative name in payments, we believe user fatigue, plateauing inflows, loss of the best-of-breed POS status, and BNPL misexecution are blocking SQ's growth. SQ still has enormous potential, but it is not being realized. Instead, BNPL estimates continue to come down & projects like Bitcoin - which accounts for <5% of GP - seem to disproportionately preoccupy management's attention. D/G to Neutral. Our detailed bottom-up model points to ~15% lower Cash App GP by 2024 vs. our prior expectation. We believe SQ no longer merits a premium to the US payments group. We value it at 5x 2024E GP. Lowering PT to $57, from $125 prior."

For an analyst ratings summary and ratings history on Block Inc. click here. For more ratings news on Block Inc. click here.

Shares of Block Inc. closed at $59.45 yesterday.

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