Block Inc (SQ  ) announced that its consumer-payments platform, Cash App, will cease operations in the U.K. on September 15, six years after launching there.

The platform, known for its mobile money transfers, was the company's first international market when it debuted in 2018. Block's stock is trading lower on Thursday.

The company website quoted, "In recent months, we have outlined our strategic approach for Cash App, which prioritizes our focus on the United States and deprioritizes global expansion. All of our operations remain unaffected by this decision," Bloomberg reports.

Cash App, launched in 2013, has become a well-known part of Block, the fintech company led by Jack Dorsey. However, the peer-to-peer payments market has grown more competitive with the rise of PayPal Holdings Inc's (PYPL  ) Venmo and bank-focused Zelle.

This decision follows NBC's February report that US financial regulators investigated Cash App after whistleblowers claimed it had conducted inadequate customer due diligence.

BofA Securities analyst Jason Kupferberg reiterated a Buy rating on Block with a price target of $82.

Block reports second-quarter results on August 1. Kupferberg noted that consensus second-quarter estimates are well-calibrated.

However, the analyst noted that gradual re-acceleration in Square GPV growth, especially in the US, remains the most important driver of the stock.

This would help allay concerns regarding competition and affirm CEO Dorsey's strategy while lending support to out-year Square forecasts.

Kupferberg and the Street modeled 9% Square GPV growth for the second quarter, which was steady compared to the first quarter, but noted investors are braced for a modest miss on this metric based on high-frequency data. Given that shares are up 15% in the last month, this could limit the potential for the second quarter to be a positive catalyst, Kupferberg said.

The analyst recognized concerns around U.S. GPV growth and SMB but noted they have been over-discounted.

Block's increased focus on profitability now enables investors to value the stock on adjusted operating income and/or GAAP EPS, which should help put a floor in shares, the analyst said.

Kupferberg noted Block is undervalued, and its high-quality business model is underappreciated.

The analyst projected 2024 revenue and EPS of $24.35 billion and $3.02.

Price Action: SQ shares are down 5.32% at $68.0. at the last check on Thursday.