Truist Upgrades Block to Buy, Sees 29% Upside Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy XYZ?
Source: CNBC
- Rating Upgrade: Truist Securities upgraded Block from hold to buy, with analyst Matthew Coad raising the price target from $72 to $77, indicating a 29% upside potential, reflecting an optimistic outlook on the company's future performance.
- Business Growth Momentum: Block's new business volume increased by 27% year-over-year in Q4, with analysts expecting this growth to boost overall volume growth in 2026 and potentially accelerate further in 2027, showcasing the company's strengthening competitive position in the market.
- User Engagement Increase: Block added 2 million Cash App monthly active users over the past two quarters, partly due to the utility of Cash App Borrow and Cash App Green, which has driven higher activity levels among previously less active users, indicating a positive trend in user engagement.
- International Growth: Block's international business continues to grow, contributing to overall volume increases, while new business applications in the U.S. are up 15% year-over-year, potentially leading to better-than-expected growth in Square's net new accounts in the U.S., further enhancing the company's market position.
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Analyst Views on XYZ
Wall Street analysts forecast XYZ stock price to rise
30 Analyst Rating
25 Buy
3 Hold
2 Sell
Strong Buy
Current: 59.540
Low
55.00
Averages
86.51
High
108.00
Current: 59.540
Low
55.00
Averages
86.51
High
108.00
About XYZ
Block, Inc. builds technology to increase access to the global economy. The Company operates through two segments: Square and Cash App. The Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The Cash App segment includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. The Cash App also includes Cash App Card, which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM. Cash App also includes the BNPL platform. Its Afterpay business is transforming the way customers manage their spending over time. Its TIDAL business is a music platform that empowers artists to thrive as entrepreneurs. Its Bitkey business is a simple self-custody wallet built for bitcoin. Proto business is a suite of bitcoin mining products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diminishing Optimism: The weakening optimism surrounding U.S. cryptocurrency legislation has eroded earlier market tailwinds, exacerbating volatility in Bitcoin and related stocks.
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- Investor Misconceptions: Many novice investors mistakenly believe that a higher stock price indicates greater value; however, market capitalization provides a more accurate comparison of company value, aiding investors in making informed decisions.
- Size Impact: Market capitalization determines a company's size tier among peers, directly influencing which mutual funds and ETFs are willing to hold the stock, particularly as large funds tend to favor companies with market caps over $10 billion.
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- Regulatory Advantage: By being directly regulated by the OCC rather than state-level authorities, Coinbase will simplify its operations and reduce compliance costs, allowing the company to operate more effectively in the fast-evolving crypto industry.
- Payment Strategy Development: Coinbase has established a payment strategy centered around the stablecoin USDC, launching the Coinbase Payments product and collaborating with Shopify to position USDC as a mainstream global payment method, thereby increasing its market share.
- Clear Market Goals: CEO Brian Armstrong has set an ambitious goal to make USDC the number one stablecoin globally and aims to position Coinbase as the leading financial services app in the coming years, reflecting its aspirations in the crypto finance landscape.
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- Automated Purchasing Tools: The system allows restaurants to automate purchase orders and manage vendors, helping users monitor waste and identify loss trends, which reduces food costs and increases profit margins, ensuring restaurants remain profitable in a competitive market.
- Enhanced User Experience: With single sign-on and unified billing, Square Restaurant Inventory by MarketMan offers a streamlined support experience, ensuring seamless connectivity for users and enhancing operational flexibility and scalability.
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- Industry-Wide Layoff Trend: Similar to Oracle, several tech companies like Meta and Amazon are also laying off employees, indicating that the rise of AI technology is leading to job reductions in the software sector, which could have far-reaching implications for the overall economy.
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