NYSE title block share: UBS analyst downgrades block share – She is confident about this share

• Block stock with poor performance this year
• UBS analyst downgrades block share – still upside potential
• Buy recommendation for Toast shares – price target raised

The block share has already lost around 16 percent of its value on the NYSE this year. Most recently it cost 52.83 US dollars (as of the closing price on September 15, 2023). The stock is now approaching its 52-week low of $51.34 from November last year, after climbing to almost $90 at the beginning of February.

Block share: downgrade from “Buy” to “Hold”

UBS analyst Rayna Kumar downgraded the block stock from “Buy” to “Hold” on September 6th. “While Block continues to make progress on profitability and adjusted quarterly expectations [Ergebnis vor Zinsen, Steuern und Abschreibungen] “We believe investors remain more focused on Block’s gross profit growth potential,” MarketWatch quoted Kumar as saying, saying she is concerned about a possible slowdown in gross profit growth due to slowdown in consumer spending. The analyst pointed to third-party data that suggests this, according to MarketWatch “With no catalysts in sight and a renewed acceleration in gross profit growth unlikely, we see limited upside potential.” , said Kumar. The analyst still sees some upward potential for the Block share. Based on her price target of $65, the Block share is expected to increase by around 23 percent in the next 12 months.

According to TipRanks, a total of 29 Wall Street analysts have provided a 12-month price target for the Block stock in the past three months. Of the 29 analysts, 23 recommend buying the stock and 6 recommend holding the stock. The average analyst price target is $86.31, which implies an upside potential of around 63 percent. The highest price target is $110.00, which would correspond to an increase in value of around 108 percent, while Kumar sees the lowest upside potential for the block share with her price target of $65.

UBS analyst upgrades Toast shares

On the same day, the UBS analyst upgraded the shares of the tech company Toast, which offers a payment platform for restaurants, from “Hold” to “Buy”. “Toast’s growing solution offering, coupled with secular demand for modern end-to-end point-of-sale (POS) technology for restaurants, is expected to help restaurants achieve huge market share gains,” MarketWatch quoted Kumar as saying. The analyst was optimistic about Toast investing in more specialized industries such as hotel restaurants. “The solution has driven momentum at the high end of the market and Toast has won multiple multi-location hotel contracts,” said Kumar.

Toast shares have already gained around 11.7 percent on the NYSE this year and are currently trading at $20.12 (as of September 15, 2023). This meant that it was able to recover significantly from its 52-week low of $15.77 reached in March, but has also had to lose some of its gains since July, when it reached its 52-week high of $27 give it back. Since its IPO almost exactly two years ago, Toast shares have lost almost 64 percent of their value.

As part of her upgrade, Kumar also increased her price target on Toast shares from $25 to $30, implying an upside potential of around 49 percent. In total, 15 Wall Street analysts have provided a 12-month price target for Toast stock in the past three months, according to TipRanks. Nine of them gave buy recommendations, while six analysts recommend holding the stock. The average price target is $27.46, 36.5 percent above the current price. The highest price target is $31, which would represent an increase of 54 percent, while the lowest price target is $25, still implying an upside potential of around 24 percent.

Editorial team finanzen.net

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