Mizuho Securities Reiterates Buy Rating on Block Inc. (SQ), investors fears 'overblown'

Mizuho Securities analyst Dan Dolev reiterated a Buy rating and $85.00 price target on Block Inc. (NYSE: SQ).

"Investors fear potential weakness in SQ's point-of-sale (POS) business amid growing competitive pressures from TOST in restaurants and Clover/FISV in next-gen POS. But new data points reveal that those worries may be overblown. Specifically, we highlight the acceleration in SQ GPV in May vs. April, which juxtaposes unchanged US volume trends for Visa US over the same time period. In our view, the bifurcation in trends vs. Visa reinforces SQ's CFO's recent commentary that new customer acquisition continued to be strong even in the midst of consumers pulling back spend. Plus, churn remains stable. We view this as a positive for the stock, which we believe prices in execution issues at the POS business. Buy."

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 $58.84 yesterday.

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