Truist Upgrades Block to Buy, Cites Improved Risk/Reward and Solid Square Momentum

Core Viewpoint - Truist Securities upgraded Block Inc. from Hold to Buy, raising the price target to $68 from $67, citing improved risk/reward profile ahead of the upcoming Investor Day [1] Group 1: Stock Performance - Block shares have fallen 21% over the past three months, creating a more favorable entry point for investors [2] - The current valuation of Block reflects some risks associated with its shift toward lending-driven revenue [3] Group 2: Financial Projections - Truist raised its 2026 adjusted EPS forecast to $3.28, slightly above the Street expectations of $3.25, indicating positive outlook [3] - The revised price target implies roughly 12% upside from current levels, suggesting potential for growth [3] Group 3: Business Segments - Despite concerns about credit risk and the rapid expansion of the Cash App Borrow product, the underlying performance of the Square segment is improving [2]