Block’s Growth Fueled by Cash App Expansion, Square Ecosystem Focus, Says Analyst

Mizuho analyst Dan Dolev maintained Block Inc (NYSE:SQ) with a Buy and raised the price target from $99 to $106.

As per Dolev, reinvigorated management focus on the Cash App and Square ecosystems could drive a meaningful upside to the 2024 guide. 

The analyst flagged four key levers:

1. Converting ~1million more Cash Card users to direct deposit — where spend is 6x higher — could add +3% to GP growth.
2. Expanding Cash App’s universe to higher income cohorts (+1%).
3. Broadening Cash App Borrow product reach (+1%).
4. Regaining Square POS momentum in U.S. restaurant industry (+1%).

Also Read: Block Analyst Bullish on Strategic Shift and Profit Focus

Dolev’s blue-sky scenario suggested gross profit growth could reach >20% in 2024 (vs. +15% guide and +16% consensus).

Dolev’s new gross profit estimates of $8.85 billion and $10.15 billion in 2024 and 2025 are up from $8.67 billion and $9.86 billion previously and are above …

Full story available on Benzinga.com