Mizuho Keeps Outperform Rating on Block (XYZ), Backs Neighborhoods

Block, Inc. (NYSE:XYZ) is one of the 10 Most Promising Fintech Stocks to Buy Now. On July 9, Mizuho reaffirmed its Outperform rating on Block, Inc. (NYSE:XYZ) with a price target of $100 on the stock.

The research firm said its recent survey of Cash App users to assess the potential of Neighbourhoods, the company’s new loyalty program for both Cash App users and Sellers, showed encouraging results.

Around two-thirds of users suggested they would either be likely or very likely to join the Neighborhoods loyalty program. Mizuho expects that Block, Inc.’s (NYSE:XYZ) new loyalty program has the potential to support user engagement and monthly active user growth over time.

During the company’s first-quarter earnings call, Block, Inc.’s (NYSE:XYZ) management described Neighborhoods as “probably the biggest lever” that the company has and pointed out that it “has the ability to just fundamentally change the size of our network and the trajectory of growth, but we’re in early days there.”

Management also noted that approximately half of the Neighborhoods following had not been active on Cash App in the month before they joined the platform.

Block, Inc. (NYSE:XYZ) is an American financial technology company that offers a range of financial products and services to consumers and merchants.

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