Truist Begins Coverage of Block (XYZ) with Sell Rating

On June 2, Truist Securities initiated coverage of Block, Inc. (NYSE:XYZ) with a Sell rating and a $60 price target, citing concerns tied to the company’s macro sensitivity and near-term strategic direction. While analysts expressed confidence in Block’s long-term vision, they warned that current conditions make it a challenging investment.

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In its note, Truist pointed to the dual exposure of Block’s core business lines—Square and Cash App—to economic fluctuations. The firm believes this late-cycle environment could weigh on transaction volumes and consumer activity, key revenue drivers for both segments. Additionally, Block’s pivot toward expanding its lending offerings to spur growth through 2025 adds another layer of risk. Truist cautioned that while these moves may help reaccelerate topline momentum, they could also increase exposure to credit losses. The firm noted that if the lending push proves aggressive, it may create a difficult comparison base heading into 2026.

Despite recognizing Block, Inc. (NYSE:XYZ)’s innovation and digital finance leadership, Truist sees limited upside over the next 12 to 18 months, especially relative to peers. The firm expects the stock to lag as market participants favor companies with more predictable earnings profiles and less cyclical exposure. Truist’s Sell rating underscores a cautious stance rooted in timing rather than fundamentals, suggesting investors wait for greater clarity on credit trends and macro stabilization before re-evaluating Block’s potential.

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Disclosure: None.