TD Cowen reiterates Block stock as ’Best Idea for 2026’ with $91 target

Investing.com - TD Cowen has reiterated its Buy rating on Block Inc. (NYSE:XYZ) with a $91.00 price target, naming the fintech company its "Best Idea for 2026."

The firm cited Block’s potential for mid-teens gross profit growth in the medium term, driven by initiatives in both its Cash App and Square business units. TD Cowen highlighted the company’s targeted three-year compound annual growth rates of approximately 30% for earnings per share and cash flow as attractive features for long-term investors.

Block shares currently trade at approximately 9.5 times fiscal year 2026 EBITDA, which TD Cowen notes represents the deepest discount to historical averages in its fintech and payments coverage, approximately 40% below the stock’s three-year average EV/FY2 EBITDA multiple.

The research firm acknowledged that while macroeconomic uncertainty persists, Block has demonstrated "clean execution" in 2025 that shows it’s on a path to greater consistency. This execution is expected to eventually correct what TD Cowen views as mispricing in the stock.

TD Cowen expressed confidence that Block has sufficient "self-help" measures to achieve its targets for 2026-2028, with early progress already visible in 2025 performance.

In other recent news, Block, Inc. reported a 10% increase in transactions during the Black Friday weekend, processing over 124 million transactions across its platforms, including Square, Cash App, and Afterpay. Approximately 49.8 million unique consumers engaged with Block’s platforms during this period, benefiting more than 1.3 million businesses. In terms of financial outlook, UBS reiterated its Buy rating on Block with a $90 price target, citing the company’s investor day as supportive of profitable growth across its ecosystems. Additionally, Moody’s upgraded Block’s corporate family rating to Ba1, reflecting significant profitability improvements and a stable outlook. Needham also reiterated a Buy rating with an $80 price target, emphasizing Block’s new products and AI initiatives unveiled at the investor day. BofA Securities increased its price target for Block to $88, maintaining a Buy rating after reviewing the company’s growth strategy and financial guidance for 2026. These developments highlight Block’s strategic focus on innovation and growth, as noted by multiple analyst firms.

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