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.’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. are positive signs of improved development efficiency.

Block, Inc. 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. 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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