Key takeaways
- Block shares were recently on the rise after falling yesterday, extending their decline from early December highs after a steady rise from summer levels.
- An upgrade from Oppenheimer, who raised his rating from “outperform” to “perform,” and a bullish price target sent the stock higher.
- Analysts cited expectations of growth in the value of payments in its Square business, an optimistic outlook for profit margins and its Bitcoin mining business as factors favorable to the stock.
Block shares rose Thursday morning, offering some relief from a recent decline that yesterday’s tech selloff extended, as Oppenheimer analysts became bullish on the stock.
The blocks (S.Q.) shares recently rose about 1%, after rising as much as 5% in the first minutes of trading. They fell more dramatically yesterday, extending their decline from early December highs after a steady rise from summer levels.
Today’s mover: An upgrade from Oppenheimer, which upgraded its rating from “outperform” to “perform” and set a price target of $115, about 16% above Visible Alpha’s average, close to $99.
Analysts cited expectations of growth in the value of payments in its Square business, an optimistic outlook for profit margins and its Bitcoin mining business as factors favorable to the stock.
“In 2025, we believe Block could potentially make a bigger bet on bitcoin, fueled by (chairman and co-founder) Jack Dorsey’s enthusiasm for cryptocurrency, as well as President-elect Trump’s pro-crypto administration,” they wrote analysts.
The upgrade was part of Oppenheimer’s broader outlook on fintech stocks for next year. Analysts named Visa (V)MasterCard (MY) and payment processing company Shift4 (FOUR) as their other top fintech picks for the coming year.
“Recent improvements in consumer spending and the potential for additional rate cuts suggest that Fintech companies are expected to maintain healthy growth in 2025,” Oppenheimer wrote.