Cantor Fitzgerald initiated formal coverage of Block Inc. (NYSE: XYZ) on Tuesday, assigning an Overweight rating and establishing a price target of $87.00. That target equates to an approximate 32% premium versus the company’s then-current share price of $65.90. The research note frames the $39.7 billion market capitalization payment firm as trading below InvestingPro's Fair Value estimate.
In its analysis, Cantor Fitzgerald pointed to what it describes as an effective early turnaround and building operational momentum as the basis for a favorable outlook. The analysts singled out Block's slate of new product initiatives as evidence that the company’s innovation capability is active, writing that the "innovation engine is firing on all cylinders."
The firm also expressed confidence in Block’s medium-term guidance but emphasized that ongoing execution will be key to realizing the projected improvement. Cantor Fitzgerald highlighted the company’s "sophisticated Lend Tech engine," suggesting a clear runway for growth in lending products.
The $87 price target reflects a multiple-driven approach and discounted cash flow work. Cantor Fitzgerald applied a 17x multiple to its calendar year 2027 EPS projection of $4.46 and supplemented that with a DCF analysis. On that basis the firm views Block’s current valuation - roughly 15x FY27 EPS using Cantor’s numbers - as attractive for a company projected to grow revenue in the low teens and EPS at about a 30% pace.
At the time of the coverage launch the company’s trailing P/E ratio stood at 13.24. The note also referenced an upcoming earnings event, with analysts expecting results in 23 days on February 19. InvestingPro users were noted as having access to additional exclusive insights and a comprehensive Pro Research Report on Block’s financial position.
Cantor Fitzgerald did not ignore downside scenarios. The research brief listed several risks to the bullish thesis, including a macroeconomic slowdown that could dent consumer spending, heightened competition within the fintech ecosystem and potential legal or regulatory headwinds.
Separately, corporate developments at Block accompanied the analyst action. The company disclosed that Ajmere Dale, its Chief Accounting Officer, will resign effective February 26, 2026. Amrita Ahuja, who serves as Chief Financial Officer and Chief Operating Officer, will assume the role of Interim Principal Accounting Officer while a permanent replacement is sought.
Block also reported that cumulative lending through its Cash App Borrow, Afterpay and Square Loans offerings has surpassed $200 billion. Cantor Fitzgerald attributed this milestone in part to Block’s proprietary underwriting technology, which incorporates near real-time behavioral data to inform credit decisions.
On the commercial front, Block expanded a partnership with Thrive to improve retail inventory management, enabling retailers to sync product catalogs and sales between physical stores and e-commerce platforms such as Shopify. Independent coverage in the market was echoed by KeyBanc, which reiterated an Overweight rating on Block and retained a $95 price target, citing confidence in the growth prospects for Square and Cash App and the potential upside from wider distribution of Square Seller GPV.
Summary
Cantor Fitzgerald launched coverage of Block with an Overweight rating and an $87 price target, highlighting product momentum and lending technology while noting execution and external risks.
Key points
- Cantor Fitzgerald assigned an Overweight rating and a $87 price target for Block, implying roughly 32% upside from $65.90.
- The firm's valuation approach uses 17x Cantor’s FY2027 EPS estimate of $4.46 plus a DCF analysis, and it views current multiples as attractive relative to projected revenue and EPS growth.
- Block reported surpassing $200 billion in cumulative lending across Cash App Borrow, Afterpay and Square Loans and expanded its partnership with Thrive to enhance retail inventory integration with e-commerce platforms.
Risks and uncertainties
- Macroeconomic weakness that reduces consumer spending could slow growth in payments and lending - impacting fintech and consumer finance sectors.
- Intense competition in the fintech space may pressure market share and margins - relevant to payments, lending and merchant services providers.
- Legal and regulatory challenges could create headwinds for product rollouts and operations - affecting the broader financial technology sector.