Block (XYZ) PT Raised to $78 at Cantor Fitzgerald: On Path to a Consistent Track Record

Cantor Fitzgerald analyst Ramsey El-Assal raised the price target on Block Inc. (NYSE: XYZ) to $78.00 (from $70.00) while maintaining a Overweight rating.

The analyst commented, "Our estimates now reflect management’s updated F26/Q1 guidance, which includes: 1) FY26 Gross Profit of ~$12.20B; 2) FY26 Adjusted Operating Income of ~$3.20B; 3) FY26 Adjusted EPS of ~$3.66; 4) Q1 Gross Profit of ~$2.80B; 5) Q1 Adjusted Operating Income of ~$600M; and 6) Q1 Adjusted EPS of ~$0.67. XYZ reported a solid beat on both Gross Profit and Adj. EPS in Q4, however, the attention-grabbing headline was the company’s decision to slash ~40% of its workforce. And while the magnitude is a bit startling, the company framed the move as a structural repositioning to embed AI, which we expect to lead to a leaner cost base and more cohesive organization. We believe Block is on its way to establishing a more consistent track record, and we would continue to be buyers at these levels. We maintain our Overweight rating and raise our PT to $78 (from $70), which is based on 16x our CY27 EPS estimate of $4.85 (vs. prior 14x CY27 EPS estimate of $4.46) + DCF analysis."

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