BofA Reduces Block, Inc. (XYZ) Valuation Following Peer Weakness

Block, Inc. (NYSE:XYZ) is among the 13 Best Big Tech Stocks to Buy According to Hedge Funds.

Block, Inc. (NYSE:XYZ) is one of the best technology stocks on our list.

TheFly reported on February 24 that Bank of America reduced its price target for XYZ to $75 from $86 while keeping a Buy rating. The adjustment reflects a lower multiple applied to the company’s 2027 earnings estimate, which is driven by softer investor sentiment for payment stocks and weaker valuation levels among peers.

Additionally, Block, Inc. (NYSE:XYZ) released a forecast for 2026 along with its fourth-quarter and full-year 2025 results on February 26. It forecasted adjusted operating income of $3.2 billion with a 26% margin, up 54% from the previous year, and full-year gross profit of $12.2 billion, reflecting 18% growth year over year. The first quarter of 2026 is predicted to see a 22% growth in gross profit to $2.8 billion and a 21% margin in adjusted operating income to $600 million, indicating sustained high performance and operational efficiency into the new year.

Block, Inc. (NYSE:XYZ) offers financial and payment solutions for businesses and individuals, including point-of-sale systems, digital payments, and Cash App services, empowering commerce, peer-to-peer transactions, and financial inclusion globally.

While we acknowledge the potential of XYZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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