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Block Falls as Evercore ISI Outlines 7 Reasons to Sell Stock By Investing.com

© Reuters. Block (SQ) Falls as Evercore ISI Outlines 7 Reasons to Sell Stock
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By Senad Karaahmetovic

Evercore ISI analysts added shares of Block (NYSE:) to the firm’s Tactical Underperform list. The analysts have an Underperform rating with a $49 per share price target on Block stock, signaling a nearly 20% downside from current levels.

Just a day before the company is due to release its earnings, the analysts highlighted 7 reasons why they believe Block stock is a sell.

  1. Evercore is 4% below consensus on Gross Profit for 2023E;
  2. Block may struggle to sustain the rapid pace of innovation;
  3. Increasing competition is facing SQ Seller;
  4. Stiffening competition within BNPL;
  5. High interest rates challenge unit economics and mission of $29 billion Afterpay acquisition;
  6. Increasing FX headwinds; and
  7. No capital return either through share repurchase or dividends.

As far as estimates are concerned, the analysts see a downside of 4% and 10% to Consensus 2023 Gross Profit and Adjusted EBITDA, respectively.

Block stock price is down about 2% in pre-open Wednesday. Shares are trading about 65% lower year-to-end.

Story Credit: investing.com

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