BofA Securities analyst Jason Kupferberg reiterated the Buy rating on Block, Inc.
The analyst highlights Block as a top Payments pick for 2025, citing its potential for outperforming due to a favorable macro backdrop and growth in Square GPV.
The analyst also projects the company to achieve its Rule of 40 target ahead of schedule and possibly be added to the S&P 500.
Additionally, the company's combination of top-line growth and profitability is viewed as strong within the large-cap Payments sector.
The analyst emphasizes that Square's GPV growth is crucial for its stock performance, and highlights new product innovations and strategic partnerships under CEO Jack Dorsey and Head of Sales Nick Molnar. This includes a unified Square app, an orders platform, and key distribution partnerships with US Foods Holding Corp. and T-Mobile US, Inc.
The analyst projects Block to maintain its preliminary 15%+ GP growth outlook for 2025, with a 400bps margin expansion, but notes that recent share outperformance may limit the impact of fourth-quarter as a positive catalyst.
According to Benzinga Pro, SQ stock has lost over 3% in the past year. Investors can gain exposure to the stock via VanEck Digital Transformation ETF
Price Action: SQshares are trading lower by 0.52% to $85.55 at last check Thursday.
