• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Raymond James has greater confidence in Block, upgrades to outperform

by January 3, 2025
written by January 3, 2025

Investing.com — Raymond James raised Block to Outperform from Market Perform in a note Friday, citing increased confidence in the company’s growth trajectory for 2025. 

The analysts highlighted a deeper analysis of Block’s Seller Gross Payment Volume (GPV), which they view as the stock’s most critical metric.

Following a “deep dive into the building blocks of Seller GPV,” Raymond (NS:RYMD) James expressed optimism about a potential acceleration in GPV growth to low double digits in 2025, up from approximately 8% in 2024. 

This anticipated growth stems from “easing comps,” international expansion with GPV growth exceeding 20% year-to-date, improved distribution partnerships such as those with US Foods and Sysco (NYSE:SYY), and ongoing product innovation.

Raymond James noted that the challenging 2024 environment, including low-single-digit declines in same-store sales (SSS), sets the stage for easier comparisons in 2025. 

They estimate SSS will return to modest growth, adding to gains driven by new client acquisitions. “We believe growth can accelerate back into the double-digits in ‘25,” the firm states.

Despite the recent 33% increase in Block’s stock price over the last three months, Raymond James considers the valuation compelling. 

They explain the shares trade at 16 times the estimated 2026 adjusted EBITDA, including stock-based compensation, versus a peer average of 20 times. 

The analysts believe this valuation is justified given Block’s faster EBITDA and free cash flow (FCF) growth compared to competitors.

The firm has set a $115 target price for Block, reflecting a 22x multiple of the estimated 2026 adjusted EBITDA. 

“We believe valuation is more than attractive at current levels,” the analysts stated, adding that management’s focus on improving EBITDA and FCF quality should further enhance the stock’s multiple.

Raymond James concluded that “it’s time,” signaling their renewed confidence in Block’s potential to outperform its peers.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Shell shares rise as Wolfe Research upgrades stock to ‘outperform’
next post
Apple’s App Store revenue rose 13% y/y in December: analyst

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • NY Fed adds extra daily standing repo operation covering year-end
    • Swiss Defence Minister Viola Amherd resigns

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy