Block Positioned For Strong Growth On Neobank Leadership & Financial

Goldman Sachs analyst Will Nance assumed coverage on Block, Inc. SQ stock with a Buy rating and price target of $80.

The analyst considers the company a leading player in SMB payments and consumer fintech, building on its extensive history of product-led innovation.

The analyst said that they believe the company’s strategy of focusing on direct deposits, advancing its neobank leadership by targeting higher market segments, and adding more financial services use cases to the platform is compelling.

Read: Affirm, Paypal, Block Shares Drop Following New BNPL Regulations

The company has started scaling free cash flow and valuation support, introduced a Rule of 40 frameworks, transitioned to GAAP-based targets (including SBC), and continues to expect mid-teens gross profit growth, writes the analyst.

Nance says that based on their estimate, the shares trade at about 18 times the 2025 adjusted EPS estimate. This is attractive for a company projected to achieve double-digit top-line growth and have several high-potential initiatives to accelerate growth.

Investors can gain exposure to the stock via ARK Fintech Innovation ETF ARKF and ARK Next Generation Internet ETF ARKW.

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Price Action: SQ shares are up 2.06% at $64.27 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Sergei Elagin courtesy: Shutterstock