Mizuho analyst Dan Dolev raised the firm’s price target on Block (SQ) to $110 from $94 and keeps an Outperform rating on the shares. The firm says that while several investors have expressed concern that Block’s initial 2025 guidance of at least 15% profit growth could be too aggressive, its analysis of the company’s three ecosystems suggests otherwise. Cash App excluding buy-now-pay-later can grow profits at a mid-teens rate, even if Block only adds 1M monthly active users and monetization rate growth moderates, the analyst tells investors in a research note. Mizuho also believes Square profits can grow 12% as new initiatives like verticalization and easier merchant onboarding can help drive a positive re-inflection. It also sees high-20% buy-now-pay-later profit growth in 2025. Taken together, these “conservative analyses” point to at least 16% total Block gross profit growth in 2025, contends the firm.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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