Bernstein has adjusted its forecast for Block (XYZ, Financial), reducing the price target from $85 to $82, while maintaining an Outperform rating on the company's stock. This adjustment comes in anticipation of Block's upcoming quarterly earnings report.
The earnings season commenced last week with reports from major banks, indicating generally stable spending volumes. However, these figures reveal a slight slowdown compared to the previous quarter. Bernstein notes that interpreting future spending trends remains challenging, partly due to potential early spending activities driven by looming tariffs.
Assessing cross-border e-commerce trends is equally complex, with fluctuating factors such as price inflation and demand changes due to tariffs complicating analysis. Despite these uncertainties, Bernstein identifies a potential positive aspect in the form of a weaker dollar and foreign exchange volatility, which could offer opportunities in the current landscape.
