Raymond James analyst John Davis upgraded Block to outperform, citing a strong confidence in the company's 2025 growth trajectory driven by seller gross payment volume acceleration.
Raymond James is optimistic about Block 's stock performance in the new year, upgrading its rating to outperform from market perform. Analyst John Davis set a target price of $115, projecting a 33% upside. Davis's confidence stems from a deep dive into Block 's seller gross payment volumes, which suggest accelerated growth in 2025.
He believes easing comparisons, new sales momentum driven by distribution improvements, international expansion, and product innovation will contribute to double-digit growth in Seller GPV. Davis also views Block's valuation as attractive despite the recent 33% stock price increase over the past three months. He anticipates management's focus on enhancing adjusted EBITDA and free cash flow will further improve the valuation over time. While acknowledging Cash App's net new active users have been flat for two quarters, Davis believes efforts to boost engagement within the existing user base will mitigate the impact on gross profit growth. Following the upgrade, shares rose over 2%. Analysts generally favor Block, with 36 out of 48 covering it rating it as a buy, and the average price target indicating a 14% upside
BLOCK RAYMOND JAMES FINTECH STOCK UPGRADE TARGET PRICE
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