KBW downgraded block shares on Monday: Find out why
KBW downgraded block shares on Monday: Find out why
- The KBW analyst now evaluates block shares with the market performance.
- Steven Kwok still sees "SQ" an upward potential of $ 75 per share.
- block stocks have currently fallen by over 25 % since the beginning of the year.
The stocks of Block Inc (NYSE: SQ) are traded in the minus this morning after a KBW analyst had downgraded the crypto company, citing several "small risks".
Block Stock could still climb $ 75
Steven Kwok, based in San Francisco, now classifies Cash-app at "Market perform". However, his reduced price target of $ 75 still indicates an upward movement of about 10 % compared to the previous closing price.
The analyst now finds block shares a little less attractive because several risks are piling up. His research note is:
These big topics revolve around the increasing competition in acquiring and the potential for an official examination in the cash app segment.
In February, Block Inc Lower profits for the fourth financial quartal.
KWOK is not convinced that the company's income from immediate payment fees or unregulated exchange are very reliable. Increasing competition, he said in his research note, could also put a strain on the carefulisms, volume growth and profitability. The strength of the seller business is rooted in its in-store offer, and since more and more goods are sold online, this could shift the purchase volume to marketplaces and e-commerce-based platforms such as Shopify. last month empty seller Hindenburg-forschung also aimed at the crypto company and claimed that his cash app has many fake/duplicated accounts, many of which in crime activities wrinkled goods. Since the beginning of the year, the block share for writing has fallen by more than 25 %. Hindenburg has a short position in block inc
Source: Coinlist.me
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