Evercore ISI Upgrades Block (XYZ) Stock to Outperform, Raises PT

Evercore ISI analyst Adam Frisch upped Block, Inc. (NYSE:XYZ)’s stock to “Outperform” from “In Line,” while lifting the price objective to $75 from the prior target of $58, as reported by The Fly.

The firm opines that initial concerns related to aggressive lending after the company’s Q1 2025 earnings have eased. As per the firm, Block, Inc. (NYSE:XYZ)’s lending strategy remains more balanced than feared. Furthermore, it possesses a diversified risk profile and controlled expansion, mainly in the Cash App Borrow.

The firm also mentioned that low-end consumer spending is stable, aided by steady unemployment deposits and consistency in payment activity. Furthermore, the analysts opine that recent product launches at Block, Inc. (NYSE:XYZ) are positive signs of improved development efficiency.

Block, Inc. (NYSE:XYZ) expects gross profit in Q2 2025 to grow 9.5% YoY to $2.45 billion. The company anticipates accelerating gross profit growth significantly in H2 2025 as it executes on its strategies to deepen engagement with Cash App customers. Block, Inc. (NYSE:XYZ) expects to deliver $450 million of adjusted operating income in Q2 2025 and $1.90 billion in adjusted operating income for FY 2025.

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Disclosure: None.