Block Inc. (XYZ) PT Lowered to $80 at BofA Securities

BofA Securities analyst Matt O\'Neill lowered the price target on Block Inc. (NYSE: XYZ) to $80.00 (from $85.00) while maintaining a Buy rating.

The analyst comments "Post-RIF Trends Near-Term Key, Neighborhoods the Long-Term Kicker: While XYZ's GPV and Cash App trajectory into 1Q and potential earnings lift from its RIF were initially well received, investors have questioned growth sustainability (particularly post RIF) and macro risks. Overall, we believe XYZ's success around adding sales, growing NVA, Cash App product velocity, and SFS tailwinds should drive strong trends n-term. We also see notable earnings upside potential given operating leverage, the RIF flow-through, and pricing. Longer term, we believe Neighborhoods has the potential to provide meaningful uplift to Square volumes and Cash App MAUs. We lower our PT to $80 (from $85), given multiple compression across comps (16-17x our CY27 EPS est of $4.82). With 34% upside to our PT, we reiterate our Outperform rating."

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