Promotions for payment service Block Inc. (NYSE: SQ) increased by more than 37% in the last week. Wall Street analysts’ revised target price was one of the growth drivers.
Mizuho maintained its buy rating on SQ stock but lifted its target price from $180 to $190. According to researchers, the peer-to-peer (P2P) payment service Block Cash App is one of the biggest financial applications for kids and their parents.
According to a poll performed by Mizuho, more than two-thirds of respondents with children use P2P payment programs on a weekly or even daily basis. If Cash App is extensively utilized by these types of customers, it is possible that the average monthly number of Block Inc. (SQ) service users may climb by several million. Mizuho predicts that Block’s gross margin will improve by at least 2% this year and that the Cash App will reach 2-4 million of the approximately 20 million people aged 13-18 in the United States.
Remember that BMO Capital analysts had a favorable estimate for Block Inc. (SQ) a month ago. They raised their rating to overweight and set a price objective of $159 for the stock. Analysts on Wall Street predict that the challenges linked with last year’s stimulus payments would subside in the second quarter, thus Block’s earnings may be better than projected. Furthermore, the corporation may obtain assistance throughout the current tax season.
The benefit of Block Inc. (SQ) is the continuous growth of the ecosystem, which includes not only digital payments, but also loans for businesses, installment payments for consumers, investment options, and cryptocurrency jobs. This increases the demand for the company’s services and helps you to retain consumers.
Block Inc.’s (SQ) stock price was $135.06 at the trading on March 24.
