April 3 - Morgan Stanley (MS, Financial) has shifted its view on Block (XYZ, Financial) from "Equalweight" to "Overweight," pointing to its attractive valuation and calm growth expectations for Square Seller.
Analyst James E. Faucette noted that Square Seller might boost its volume by about three percentage points, possibly reaching around nine percent by year's end. He based this on recent trends among small and medium-sized merchants.
Investors still tread carefully, but current spending trends hint at near-term stability. The recent cut in staff and high employee turnover could signal stronger profit margins in 2025.
The firm has also nudged its price target Block up to $67 from $65, keeping its enterprise value-to-EBITDA multiple at 11 times. This change reflects a modest premium compared to growth-adjusted peers, with the EV-to-gross profit ratio for its Cash App segment remaining steady.
