Block rises after Truist Securities upgrades to 'buy'

Block

18/03/2026 11:46

** Payments firm Block's XYZ.N shares rise 2.3% to $61.18 premarket

** Truist Securities upgrades XYZ to "buy" from "hold"; raises PT to $77 from $72, implying a roughly 29% upside to stock's last close

** Brokerage sees upside potential to Street margin expectations following XYZ's ~40% reduction in workforce

** Says capital return could surprise to the upside as free cash flow generation improves

** XYZ said last month it will cut over 4,000 jobs as part of an overhaul to embed artificial intelligence across its operations

** "We are still keeping an eye on signs of intensifying competition among neobanks and SMB-focused acquirers, but we believe the current multiple takes both this and the heightened credit risk into account" - Truist analyst Matthew Coad

** As of last close, XYZ stock down 8% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))