Block’s faster innovation and improving Cash App credit metrics draw analyst optimism
William Blair analysts are optimistic about Block's undervalued stock due to faster innovation and improving metrics in Cash App and Square.Summary
Analysts at William Blair maintained their Outperform rating and $90 target for Block (XYZ) by the end of 2026, citing that the company is innovating faster than its fintech peers and remains undervalued. This optimism follows Block's recent three-year targets projecting mid-teens gross profit growth. The analysts highlighted stronger performance across both core ecosystems: Cash App is deepening its role as a financial hub with expanding credit products like Borrow and BNPL, supported by data-driven underwriting. Furthermore, Square, Block's merchant arm, is showing renewed momentum through faster product releases and improved traction, with new U.S. profit growth outpacing payment volume growth, suggesting a move up-market.
(Source：The Block)