- Analysts maintained their faith in Block Inc (NYSE:SQ) post Q4 results.
- Citi analyst Peter Christiansen says Block's Q4 results were better than expectations, topping Citi's gross profit estimates by 8% and Street estimates by 2%.
- The company held off from issuing a formal fiscal 2022 outlook. However, it is now planning an investor day for May 18, where investors should get a fuller picture of AfterPay integration plans and further details on unit economics.
- The analyst thinks the results, newly disclosed trends, and positive nearer-term comments "equate to a win" for Block investors.
- Christiansen expects Street estimates and sentiment to improve from here.
- He recommends a Buy rating and a $220 price target (131.6% upside).
- Deutsche Bank analyst Bryan Keane lowered the price target on Block from $210 to $180 (89.5% upside) and kept a Buy.
- The analyst says the company delivered solid Q4 gross profit growth.
- Block gave limited forward guidance, commenting on January and February trends and directionally pointing towards a tougher comp in March, likely leading to a wide spread of Street estimates.
- He cites lower peer group valuations and more conservative estimates for the target drop.
- Needham analyst Mayank Tandon maintained Block with a Buy and lowered the price target from $315 to $175 (84% upside).
- JPMorgan analyst Tien-tsin Huang lowered the price target on Block from $200 to $192 (102% upside) and maintained an Overweight rating on the shares.
- Price Action: SQ shares traded higher by 16.7% at $110.83 in the premarket on the last check Friday.
