Here's Why Block's Shares Are Trading Higher Premarket

Analysts maintained their faith in Block Inc 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.

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

25% Off Benzinga's Most Powerful Trading Tools

-

-

-

-

-

-

-