TLDR
- Cantor Fitzgerald cut its Block price target from $87 to $70, citing weaker GPV growth outlook and multiple compression in the payments sector
- Block flagged a sequential deceleration in Q4 Square GPV due to October weather events and tough holiday comparisons
- Cantor’s new $70 target is based on ~14x its 2027 EPS estimate of $4.46, down from 17x previously
- Citi also lowered its price target on Block to $85 from $105, while keeping a Buy rating, expecting 19% gross profit growth
- Nine analysts have revised earnings estimates downward ahead of Block’s February 26 earnings report
Block Inc. is heading into its February 26 earnings report with some headwinds, after two Wall Street firms trimmed their price targets on the stock this week.
Cantor Fitzgerald cut its price target on Block to $70 from $87 on Monday, while keeping an Overweight rating. The stock currently trades around $50, meaning the new target still implies about 40% upside.
The cut comes after Block’s management flagged an expected slowdown in fourth-quarter Square GPV — gross payment volume — at a recent investor conference. The company pointed to weather events in October and a tough comparison period during the holiday season as the main drivers.
Cantor revised its Seller GPV growth estimate down to approximately 10.0% as a result. Morgan Stanley had separately adjusted its Q4 Square Seller GPV growth forecast to 10.3% year-over-year.
The firm also cited compression in market multiples across the broader payments space. The new target is based on roughly 14 times Cantor’s 2027 EPS estimate of $4.46, combined with a DCF analysis, each equally weighted. The prior target used a 17x multiple on the same EPS figure.
Citi Also Trims Its Target
Citi analyst Bryan Keane made a similar move on February 5, lowering his price target on Block to $85 from $105, while maintaining a Buy rating. Keane reset the target ahead of the Q4 2025 report but said Citi still expects Block to deliver 19% gross profit growth.
Truist analyst Matthew Coad raised his target modestly to $72 from $68 on January 20, maintaining a Hold rating. Coad expected solid quarterly results but flagged that tough year-over-year comparisons could limit upside surprises on volume metrics. He also noted some management teams in FinTech could reset 2026 guidance below current Street expectations.
Nine Analysts Cut Estimates
InvestingPro data shows nine analysts have revised their earnings estimates downward ahead of the February 26 report. Block’s stock has fallen more than 40% over the past year, and InvestingPro’s Fair Value analysis currently shows the stock as undervalued.
On the business side, Block recently crossed $200 billion in total lending through Cash App Borrow, Afterpay, and Square Loans. The company credits its underwriting technology — which uses near real-time behavioral data — for enabling 38% more loan approvals at the same loss rates versus traditional methods.
Block also launched an upgraded Square Register that runs 40% faster, thanks to a new processor and expanded memory.
In leadership news, Chief Accounting Officer Ajmere Dale is stepping down in February. Amrita Ahuja will serve as Interim Principal Accounting Officer while the company looks for a permanent replacement.
Block is set to report Q4 2025 earnings on February 26.
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