Mizuho Increases Block's (XYZ) Price Target, Keeps Outperform Rating

On Tuesday, May 27, Mizuho Securities increased the price target for Block, Inc. (NYSE:XYZ), previously known as Square, to $71 from $68 and kept an “Outperform” rating.

Mizuho made this decision after an analysis that shows a link between Bitcoin’s price and user engagement on Block’s (NYSE:XYZ) Cash App.

The analysis showed that the recent surge in the price of Bitcoin has led to an increase in weekly active users of Cash App. The firm noticed that in late April and early May, there was a notable uptick in activity. Previously, in February and March, user growth was slower.

These findings are in agreement with statements from Block, Inc.’s (NYSE:XYZ) management, which highlighted a rebound in Cash App usage in April. If Bitcoin can continue climbing, Cash App could experience increased user engagement in the coming months.

Block, Inc. (NYSE:XYZ) is an American financial technology company that offers a wide range of products and services to consumers and merchants.

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Disclosure: None.