Oppenheimer Raises Block, Inc. (XYZ) Price Target to $89 from $85
Block, Inc. (NYSE:XYZ) is among the 11 Best Low Priced Growth Stocks to Buy Right Now.
On February 27, Oppenheimer raised its price target on Block, Inc. (NYSE:XYZ) to $89 from $85 and maintained an Outperform rating following a strong Q4 and constructive 2026 outlook. The firm emphasized a significant organizational restructuring, including a workforce reduction of more than 40%, aimed at operating with leaner, highly skilled teams and accelerating AI-driven automation. These actions are expected to support earnings targets for 2026 that exceed current consensus estimates. Cash App engagement strengthened in Q4, with 1 million incremental monthly transacting actives added, following 1 million additions in Q3.
Block, Inc. (NYSE:XYZ)'s fourth-quarter adjusted EPS was $0.65, with gross profit rising to $2.87 billion, driven by 33% year-over-year growth in the Cash App ecosystem. Gross payment volume reached $66.9 billion, slightly below forecasts, while operating expenses increased to $2.30 billion. Adjusted EBITDA improved to $930 million.
During its third-quarter 2025 earnings call, Block, Inc. (NYSE:XYZ) guided to Q4 2025 gross profit growth exceeding 19% year-over-year, reaching approximately $2.755 billion, alongside adjusted operating income of $560 million and a targeted 20% adjusted operating margin. Management raised full-year expectations accordingly, reflecting sustained profitability expansion.
Block, Inc. (NYSE:XYZ), founded in 2009 by Jack Dorsey and headquartered in Oakland, California, is a financial technology and services provider offering point-of-sale systems, digital payments, and consumer financial products.
While we acknowledge the potential of XYZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclosure: None.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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