Update shared on17 Sep 2025
Fair value Increased 2.36%Analysts have raised Block's price target to $87.17, citing accelerating payment volumes, improving Cash App and Square performance, and expanded margins, but caution remains due to rising reliance on lending products and concerns over the sustainability of profit growth.
Analyst Commentary
- Bullish analysts point to accelerating gross payment volumes and improving trends at both Cash App (notably Borrow, BNPL, and Cash Card) and Square, resulting in earnings beats and upgraded outlooks.
- Expanded operating margins, improved liquidity, and S&P 500 inclusion are driving higher valuation multiples and increasing institutional interest in Block.
- Concerns from bearish analysts center on Block's growing dependence on lending products for revenue reacceleration, which raises risks related to credit losses and working capital requirements.
- Debate persists over the sustainability of structural gross profit growth in Square; mixed sentiment is fueled by doubts about the longevity and quality of recent financial outperformance.
- Intensifying competition, Cash App user growth deceleration, and market skepticism about a premium valuation due to these risks temper some analysts’ enthusiasm, with worries about long-term growth trajectory, especially in the lending-dependent strategy.
What's in the News
- Oppenheimer raised Block's price target to $92 from $71, citing strong Q2 results that exceeded expectations across gross profit, operating income, and EBITDA, as well as an improved 2025 outlook (Oppenheimer).
- TD Cowen increased Block's price target to $95 from $85, highlighting a solid Q2 beat driven by 16% Cash App gross profit growth (led by Borrow, BNPL, Cash Card) and improved Square GPV and gross profit, especially in the US and internationally (TD Cowen).
- Q3 guidance from Block was ahead of expectations, and the full-year 2025 outlook was raised more than the Q2 beat, reflecting broad-based business strength (Oppenheimer).
- Square's US and international improvements are attributed to increased distribution and product investments, supporting growth in GPV and profitability (TD Cowen).
- JPMorgan will begin charging fintechs like Block for access to customer bank account data later this year, potentially increasing costs for Block and its users depending on data usage (Bloomberg).
Valuation Changes
Summary of Valuation Changes for Block
- The Consensus Analyst Price Target has risen slightly from $85.16 to $87.17.
- The Net Profit Margin for Block remained effectively unchanged, moving only marginally from 7.25% to 7.36%.
- The Future P/E for Block remained effectively unchanged, moving only marginally from 25.92x to 26.10x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.