Block (SQ) Stock Targets 27% Upside as Piper SandlerDouble-Upgrades on Margin Expansion Outlook

Block Inc. shares could see significant upside following the company’s operational optimization efforts that are boosting profitability, according to Piper Sandler. The investment firm doubled up its rating on the payments stock to overweight from underweight, while also raising its price target to $100 from $58, implying 27% upside from Monday’s close. Shares edged up nearly 1% in premarket trading.

“Valuation compression has created selective opportunity,” analyst Bill Carcache noted in a client note. “We view Block as a gross profit growth and margin expansion story whose current valuation does not fully reflect the durability of its earnings trajectory.”

Carcache pointed to Square and Cash App’s enhanced monetization strategies as key drivers of double-digit growth potential, without requiring aggressive assumptions. Block has demonstrated improved expense discipline and is positioned to benefit from artificial intelligence-driven efficiencies, which should accelerate the conversion of gross profit gains into faster adjusted operating income growth.

Over the past year, Block shares have risen nearly 15%, driven by an improved financial outlook and operational cost reductions. The stock received a double-digit boost in March following the company’s decision to cut its workforce in half.

The recent call from Piper Sandler aligns with broader Wall Street sentiment, as 38 of the 44 analysts covering Block have buy or strong buy ratings on the stock, according to LSEG data.

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