Block jumps as investors cheer cost cuts and bullish analyst calls

Block

27/02/2026 15:32

** Shares of payments firm Block XYZ.N rise 17.55% to $64.10 in early morning trading session

** Late Thursday, Block forecast 2026 profit above estimates and said it is cutting nearly half of its workforce

** Oppenheimer raises PT to $89 from $85 citing XYZ is well-positioned for share gains, supported by increasing product monetization and the still-low penetration above 2% of a $500 billion total addressable market (TAM)

** Morgan Stanley upgrades XYZ to "overweight" from "equal weight" and raises PT to $93 from $72

** "We think the company has been rapidly expanding its TAM through product improvements, new offerings, and increased

pricing flexibility," MS says

** TD Cowen raises PT to $95 from $91: says the bigger story is a fundamental change in Block that sees it parting ways with 40%+ of its 10k+ employee base due to the efficiency being realized in advanced AI tools

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com;))