The Block Inc CDI (ASX: SQ2) share price is lifting today in what appears to be a positive day for the buy now, pay later (BNPL) sector.
Block shares are currently trading at $187.11, a 7% gain, after hitting an intraday high of $190.49. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 033% at the time of writing.
Let’s take a look at what could be impacting Block today.
Broker upgrade in the US
Block’s ASX shares are following in the footsteps of the company’s New York Stock Exchange (NYSE) listed shares on Wall Street.
Mizuho analyst Dan Dolev upgraded the target price on the US listing of Block (NYSE: SQ) to $190 from $180. Block’s NYSE listing surged 5.17% to $141.79 on the US market on Tuesday.
Mizuho reportedly upgraded the price target after conducting a survey that found Block’s peer-to-peer payments app is considered a leading financial app by parents of teenagers.
More than two-thirds of parents had children using the payment app weekly or daily.
Commenting on the upgrade, Dolev said:
We estimate that Cash App may reach as many as 2-4 million of the (roughly) 20 million individuals aged 13-18 in the U.S.
Dolev maintains a buy recommendation on Block.
Analysts at Macquarie have recently provided Block’s Australian-listed shares with an outperform rating and $230 price target, as my Foolish colleague James reported.
Block is not the only BNPL share to rise today. Zip Co Ltd (ASX: Z1P) is up 6.54% while Tyro Payments Ltd (ASX: TYR) shares have jumped 5.54% at the time of writing. The All Technology Index (ASX: XTX) is also up 2% after the positive performance of US tech shares overnight.
Block shares are recovering today after falling 5% yesterday, following a similar decline in the US amid inflationary pressures.
Block share price snapshot
The Block share price has gained 7% year to date, soaring nearly 48% in a month and 41% in the past week alone.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has shed around 1% year to date.
Block has a market capitalisation of about $9.1 billion.
The post Why is the Block (ASX:SQ2) share price going gangbusters today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Block right now?
Before you consider Block, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Block wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Why Block, Calix, Carnarvon, and Imugene shares are racing higher
- Leading the pack! ASX tech shares storm higher on Wednesday
- ASX 200 (ASX:XJO) midday update: Block and Zip jump, Fisher & Paykel Healthcare sinks
- Why A2 Milk, Atlas Arteria, Block, and Boral shares are tumbling today
- Why Block, Core Lithium, Liontown, and Qube shares are rising
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Macquarie Group Limited and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/bBmtraH
Leave a Reply