BNP Paribas Exane Upgrades Block (XYZ) Stock to Outperform

On May 27, BNP Paribas Exane upped Block, Inc. (NYSE:XYZ)’s stock to “Outperform” from “Neutral” with a price objective of $72, as reported by The Fly.

As per the analyst, Block, Inc. (NYSE:XYZ)’s guidance for a mid-teens growth acceleration in gross profit for Q4 2025 is achievable, with challenges including competitive pressures in bitcoin and the cash business starting to fade. Furthermore, the acceleration expected in H2 2025 is projected to align with regular business operations.

The introduction of the Borrow product and the Proto launch have been tagged as potential growth catalysts. The company expects Block topline growth to accelerate from a low point in H1 2025 to the mid-teens in Q4 2025.

Block, Inc. (NYSE:XYZ) believes that improvements in Cash App gross profit are expected to be the primary driver of the overall acceleration in Block topline. However, there are expectations to see faster growth in Square and the first gross profit contributions from Proto, as the company delivers its first chips and systems in H2 2025.

Block, Inc. (NYSE:XYZ) expects the enhancements to Cash App Borrow to fuel gross profit growth with the help of increased originations and improved unit economics.

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Disclosure: None.