Redburn Atlantic has revised its price target for Block (XYZ, Financial), decreasing it from $40 to $35, while maintaining a Sell rating on the stock. The decision reflects the firm's analysis of the payments industry, which it describes as "misunderstood." Despite the sector being seen as undervalued, with strong cash returns and limited earnings risk, Redburn expresses concerns about the potential impacts of economic cycles on payment companies.
The analysts at Redburn suggest that fears surrounding the sector's vulnerability to economic cycles may be exaggerated. They argue that payment businesses are more aligned with nominal consumption patterns, indicating that any potential recession would likely affect unit sales rather than nominal values.
In light of a possible economic slowdown, Redburn has also revised its estimates across the payment sector. Despite these adjustments, the firm remains optimistic about certain players within the industry, naming Mastercard and Toast as its top recommendations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for Block Inc (XYZ, Financial) is $100.64 with a high estimate of $125.00 and a low estimate of $57.00. The average target implies an upside of 87.23% from the current price of $53.75. More detailed estimate data can be found on the Block Inc (XYZ) Forecast page.
Based on the consensus recommendation from 45 brokerage firms, Block Inc's (XYZ, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Block Inc (XYZ, Financial) in one year is $90.86, suggesting a upside of 69.04% from the current price of $53.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Block Inc (XYZ) Summary page.
