July 21 - Block (XYZ, Financial) shares advanced roughly 8% on Monday morning after it was selected to enter the S&P 500 Index later this week.
The inclusion follows Chevron's (CVX, Financial) completed acquisition of Hess (HES, Financial), creating a vacancy in the benchmark index that Block is set to fill starting Wednesday.
Despite a 14% drop in 2025 prior to the news, the digital payments company is now drawing renewed attention from analysts, many of whom point to rising momentum across its key business segments.
Jefferies recently lifted its price target on Block to $90 from $75 while maintaining a buy rating. The firm expects a pickup in gross payment volume, particularly in the U.S., to support further upside.
Analysts also highlighted the potential for growth at Cash App, Block's consumer-focused payments platform, which could see stronger user engagement in the coming quarters.
Deutsche Bank, which also holds a bullish stance, noted signs of improving transaction trends, citing room for further acceleration.
