Here’s why the Block share price is jumping 9% today

The Block Inc (ASX: SQ2) share price has been one of the best performers on the ASX 200 on Wednesday.

In morning trade, the payments company’s shares are up 9% to $96.47.

This compares favourably to a 1.4% gain by the ASX 200 index this morning.

What’s going on with the Block share price?

The Block share price is racing higher on Wednesday following an incredibly strong night of trade for the company’s NYSE listed shares.

On Wall Street, the Afterpay owner saw its shares jump a whopping 12% last night. This was driven by a broad market rebound, with beaten down tech stocks among the biggest movers.

For example, the PayPal share price jumped 6.5% and buy now pay later provider Affirm saw its shares rocket almost 14% higher.

This helped drive the tech-focused NASDAQ index 3.35% higher for the session.

What else?

Also giving the Block share price a boost on Tuesday night was a bullish broker note out of Deutsche Bank.

According to the note, as we reported here, the broker has put a buy rating and US$95 price target on the company’s shares.

Deutsche Bank has been pleased with the progress the company has made connecting its three ecosystems – Afterpay, Cash App, and Square. It is expecting this to lead to wider adoption and stronger margins.

Based on current exchange rates, Deutsche Bank’s price target equates to A$146 for its locally listed shares.

This implies potential upside of 51% for the Block share price on the ASX even after today’s stellar gains.

The post Here’s why the Block share price is jumping 9% today appeared first on The Motley Fool Australia.

.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the 10 most shorted ASX shares
• Why Block, Nick Scali, Piedmont Lithium, and Premier Investments are sinking today
• Here are the top 10 ASX 200 shares today
• The Block share price is smashing the market with a 6% gain today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zIMvaw6