Block Inc. has been under pressure for months, with the stock losing more than a fifth of its value as investors reacted to rising credit risk concerns and the rapid expansion of Cash App Borrowing.
Key Takeaways
Block’s stock decline has reset valuation expectations and drawn renewed analyst support.
Strong Square-segment performance is seen as a key offset to consumer credit concerns.
Recent analyst upgrades are framed as a response to the pullback, not a reaction to positive news.
But rather than signaling deeper problems, several equity research firms now argue that the pullback has created an opportunity instead of a warning sign.
Core Business Strength Seen as the Counterbalance to Credit Risk
Analysts reviewing the recent decline say the sell-off ignores improving performance in the company’s merchant-facing Square segment, which has continued to post steady growth. According to research notes, that momentum is strong enough to offset near-term credit exposure on the consumer side — the same issue that originally triggered the correction.
The firm’s 2026 profitability outlook has been revised upward by multiple analysts, with earnings expectations climbing to the low-$3 per share range.
Analyst Upgrades Come After the Decline, Not Before It
The shift in sentiment became clearer mid-November, when Truist Securities upgraded Block from Hold to Buy and lifted its price target to $68. The upgrade was the result of the sell-off rather than the cause of it — analysts said the decline had improved the risk-reward profile rather than signaled worsening fundamentals.
Another research team, TD Cowen, maintained its Buy rating and set a $91 target, calling Block “oversold” after its reaction to third-quarter earnings. The firm expects upcoming management guidance to address lingering questions about medium-term financial performance.
Where Cryptocurrency Fits Into the Long-Term Thesis
Block continues to present itself as a hybrid fintech–crypto company rather than a traditional payments processor. Its strategy integrates Bitcoin both for individuals and merchants, positioning BTC as a core part of the user ecosystem rather than an experimental side feature. Analysts monitoring the stock say this long-term positioning has helped the company retain high-conviction investors during periods of volatility.
