Keefe, Bruyette & Woods Increases Block (NYSE:XYZ) Price Target to $90.00

Key Points

• Keefe, Bruyette & Woods raised Block's price target to $90 (from $85) and kept an "outperform" rating, implying roughly a 23.8% upside from the prior close.
• Block beat Q1 expectations with $0.85 EPS vs. $0.30 consensus and raised Q2 and FY2026 guidance to $0.86 and $3.85 respectively, fueling optimism on margins and profitability.
• Analyst consensus remains positive — a "Moderate Buy" average rating with most analysts on Buy/Strong Buy and a consensus price target of $83.74, while the stock traded near $72.71.

Block (NYSE:XYZ - Get Free Report) had its price objective lifted by equities research analysts at Keefe, Bruyette & Woods from $85.00 to $90.00 in a research report issued on Friday,Benzinga reports. The firm presently has an "outperform" rating on the technology company's stock. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 23.78% from the stock's previous close.

Other research analysts have also recently issued reports about the company. Loop Capital started coverage on Block in a report on Tuesday, March 31st. They issued a "buy" rating and a $75.00 price target on the stock. The Goldman Sachs Group reissued a "buy" rating on shares of Block in a report on Friday. Cantor Fitzgerald boosted their price target on Block from $78.00 to $88.00 and gave the stock an "overweight" rating in a report on Tuesday, April 21st. Raymond James Financial raised Block to a "moderate buy" rating in a report on Friday, February 27th. Finally, Needham & Company LLC boosted their price target on Block from $90.00 to $95.00 and gave the stock a "buy" rating in a report on Friday. Four equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Block has an average rating of "Moderate Buy" and a consensus price target of $83.74.

Block Stock Up 3.7%

XYZ stock opened at $72.71 on Friday. Block has a twelve month low of $48.21 and a twelve month high of $82.50. The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 0.26. The stock has a market cap of $43.56 billion, a P/E ratio of 34.71, a PEG ratio of 1.03 and a beta of 2.57. The business's 50-day moving average price is $63.99 and its 200-day moving average price is $64.19.

Block (NYSE:XYZ - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The technology company reported $0.85 earnings per share for the quarter, beating analysts' consensus estimates of $0.30 by $0.55. Block had a return on equity of 6.66% and a net margin of 5.40%.The firm had revenue of $6.06 billion for the quarter. During the same period in the previous year, the firm earned $0.56 earnings per share. The firm's quarterly revenue was up 4.9% on a year-over-year basis. Block has set its Q2 2026 guidance at 0.860-0.860 EPS and its FY 2026 guidance at 3.850-3.850 EPS. On average, equities research analysts forecast that Block will post 2.22 EPS for the current year.

Insider Transactions at Block

In other news, insider Owen Britton Jennings sold 3,555 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $63.41, for a total transaction of $225,422.55. Following the sale, the insider directly owned 231,262 shares of the company's stock, valued at $14,664,323.42. This represents a 1.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Amrita Ahuja sold 30,919 shares of the company's stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $75.00, for a total value of $2,318,925.00. Following the sale, the chief financial officer directly owned 500,816 shares in the company, valued at $37,561,200. This trade represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 49,725 shares of company stock valued at $3,401,393 over the last 90 days. Insiders own 11.37% of the company's stock.

Institutional Trading of Block

Several hedge funds have recently modified their holdings of XYZ. Baird Financial Group Inc. purchased a new stake in shares of Block during the 2nd quarter worth approximately $1,866,000. Brown Advisory Inc. purchased a new stake in shares of Block during the 2nd quarter worth approximately $516,000. Jump Financial LLC purchased a new stake in Block during the 2nd quarter valued at $385,000. Federated Hermes Inc. purchased a new stake in Block during the 2nd quarter valued at $53,000. Finally, Cerity Partners LLC purchased a new stake in Block during the 2nd quarter valued at $1,861,000. 70.44% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Block

Here are the key news stories impacting Block this week:

• Positive Sentiment: Q1 earnings beat and revenue strength — Block reported $0.85 EPS vs. consensus and posted solid revenue, surprising investors and underpinning optimism on profitability. Block Shares Climb After Q1 Report — Here's Why
• Positive Sentiment: Raised guidance — management lifted Q2 2026 EPS guidance to $0.86 (vs. ~$0.74 consensus) and set FY 2026 EPS at $3.85 (vs. ~$3.35 consensus), signaling better-than-expected margin and profit outlooks that justify re-rating. Block Lifts Guidance on Higher Payment Volumes, Boom in Lending
• Positive Sentiment: AI and product-led revenue expansion — management emphasized AI-driven automation and using Cash App as a lending hub (embedded finance + tighter merchant/consumer links), which supports sustainable revenue diversification and higher loan volumes. Block Rallies as AI Push Turns Cash App Into a Lending Hub
• Neutral Sentiment: Gross-profit/consumer resilience — Block raised gross profit targets (now ~$12.33B) on resilient consumer spending and strong payment volumes; positive for top-line stability but depends on continued volume trends. Block Lifts Guidance on Higher Payment Volumes, Boom in Lending
• Neutral Sentiment: Company updates and investor call — Block posted Q1 results and hosted an earnings webcast to walk through the quarter and strategy; useful detail but largely confirmatory. Block Announces First Quarter 2026 Results
• Negative Sentiment: Sweeping job cuts remain a risk — while management and some coverage (Barron’s) say cuts are improving margins, the scale of reductions creates execution, product-development and reputational risks that could weigh on longer-term growth if not managed. Block Stock Jumps After Earnings. How Those Vast Job Cuts Are Working Out.

About Block

Block NYSE: XYZ is a financial technology company that builds products and services to facilitate electronic payments, commerce, and consumer finance. Its principal business lines include a seller-focused ecosystem that provides point-of-sale hardware and software, payment processing, invoicing, payroll and lending services, and a consumer-facing platform that offers peer-to-peer payments, banking-like features, and investing. Block's portfolio also encompasses music streaming and buy-now-pay-later capabilities through businesses acquired to broaden its reach beyond core payments.

The company was founded as Square in 2009 by Jack Dorsey and Jim McKelvey and later rebranded to Block to reflect a diversified set of businesses across payments, consumer finance, and emerging technologies.

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