According to Macquarie experts, the decline in Block shares since the end of July presents an attractive buying opportunity. Analyst Wei Sim expects Block’s growth to accelerate significantly in the fourth quarter.
An analyst at Macquarie Sim considers Block’s cash app business to be one of the company’s greatest strengths, and expects growth to continue to accelerate year-over-year in the fourth quarter.
“Management has confirmed that it’s focused on enabling developers to integrate third-party platforms to give top sellers more ideas — a highlight given the typically closed-loop benefits of using Cash App and Square POS, which we’ve already discussed,” Sim says.
Despite Block’s optimistic business prospects, Macquarie expects continued uncertainty in the “buy now, pay later” segment. As a reminder, Block bought Australian fintech company Afterpay for $29 billion in 2021.
Wie Sim, a Macquarie expert, sees the stock being bought up to $101. “Stock value is low. We are upgrading the stock based on improved positioning and fundamentals,” Sim wrote in a note to clients.
However, risk-averse investors can still get their feet in the door. Those who have already invested let profits flow in with a late stop.
