Here's Why Block Is Set To Win As Per Credit Suisse

• Credit Suisse analyst Timothy Chiodo reiterated an Outperform on Block, Inc (NYSE: SQ). Due to higher interest rates, Chiodo cut the price target to $170 from $180.

• He saw two dominant business models that will "win" over the coming decade within payment acceptance.

• The models will either: 1) be the software platform (and monetize via SaaS, payments, embedded finance, and commerce-enablement services) such as Square; or 2) be a preferred partner in embedding and powering additional ecosystem- and monetization-enhancing services (e.g., payments, issuing, capital, payroll, insurance, fulfillment, tax, lead generation, B2B AP).

• Block is building a two-sided network supported by Cash App and Afterpay, which is a competitive advantage in providing lead generation and conversion versus other merchant acquirers.

• With Block shares trading at 7-times his 2022 gross profit, re-accelerating trends ahead, and a long list of "call options," Chiodo sees a pathway to re-rating.

• Price Action: SQ shares traded higher by 5.69% at $63.73 on the last check Wednesday.

Latest Ratings for SQ

Date	Firm	Action	From	To
Mar 2022	Mizuho	Maintains		Buy
Feb 2022	DA Davidson	Maintains		Buy
Feb 2022	BMO Capital	Upgrades	Market Perform	Outperform

View More Analyst Ratings for SQ

View the Latest Analyst Ratings

See more from Benzinga

• RBC Shares Its Insight On Fintechs, Apple Buy Now Pay Later, Ultimate Winners

• Mizuho's Bullish Re-Rating On PayPal Had An Apple Connection - Read To Know

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.