Mizuho Defending Block Inc. (SQ)
Mizuho Securities analyst Dan Dolev reiterated a Buy rating and $93.00 price target on Block Inc. (NYSE: SQ)
The analyst comments "Hindenburg Research argues that SQ has systematically taken advantage of the demographics it claims to be helping, overstating accounts and misleading transacting active metrics. While the report makes valid arguments, such as the slowdown in inflows and sustainability of the instant deposit fees, which might increase regulatory scrutiny, other claims & risks around high, unregulated interchange fees and definition of monthly users are well known to investors. Other aspects of the report, like making inferences from songs or adding back SBC after SQ publicly shifted focus to include non-cash expenses in operating income, may hold less water. As a reminder, the near-term bull case on SQ remains reaching better than expected profits helped by cost control. The long-term bull case remains creating a unique B2B2C closed-loop payments network by connecting merchants and consumers."
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Shares of Block Inc. closed at $72.65 yesterday.