Block Shares Fairly Valued, Analysts Say Stock 'Not For The Faint Of Heart'

Core Viewpoint - Analysts expect Block's performance in 2025 to be weighted towards the second half, following mixed fourth-quarter financial results and guidance [1][10]. Financial Performance - Block's fourth-quarter report showed a decline in share price, attributed to a miss on earnings per share and soft guidance, despite gross payment volume and adjusted EBITDA exceeding estimates [3][4]. - Cash App card monthly actives increased by 1 million sequentially to 25 million, marking the first quarter-over-quarter improvement since Q1 2024 [9]. Growth Drivers - The company plans to expand the Cash App Borrow feature and scale Afterpay on Cash App Card, which are expected to drive gross profit growth throughout the year [4][11]. - Analysts believe that product innovation will be crucial for Block's growth in fiscal 2025, with expectations for gross profit growth to ramp up, particularly in the second half of the year [9][10]. Analyst Ratings and Price Targets - Benchmark analyst Mark Palmer reiterated a Buy rating with a price target of $99, while Citizens analyst Andrew Boone maintained a Market Perform rating with no price target [8]. - Raymond James analyst John Davis lowered the price target from$115 to $103 but maintained an Outperform rating, indicating mixed results but a positive long-term outlook [8]. Market Context - Block's stock is currently down 17.2$68.74, within a 52-week trading range of $55.00 to$99.26, reflecting market reactions to the recent earnings report [12].