UBS Reaffirms Buy Rating on Block (XYZ) After Investor Day

Core Insights - Block Inc. is recognized as one of the top high-growth stocks to consider, with UBS maintaining a Buy rating and a price target of $90 following the company's first investor day in three years [1] - The company presented a three-year financial plan during its 2025 Investor Day, projecting mid-teens annual gross profit growth to approximately $15.8 billion by 2028 [2] - Block anticipates a nearly 30% annual increase in adjusted operating income to $4.6 billion by 2028, and adjusted earnings per share are expected to rise in the low 30% range to $5.50 [2] Financial Performance - Block Inc. forecasts mid-teens annual gross profit growth through 2028, aiming for around $15.8 billion [2] - The adjusted operating income is projected to grow by almost 30% annually, reaching $4.6 billion by 2028 [2] - Adjusted earnings per share are expected to increase in the low 30% range per year, targeting $5.50 by 2028 [2] Innovation and Revenue Streams - UBS highlighted Block's innovative capacity, noting the expansion of revenue streams from 5 in 2020 to 26, each generating over $100 million in gross profit [3] - The company benefits from network effects that are considered challenging for competitors to replicate [3] - Block Inc. offers a variety of financial products and services, including the Cash App for individual payments [3]