Wells Fargo Downgrades Block Outlook as Analyst Targets 47% Upside

Fintel reports that on May 2, 2025, Wells Fargo downgraded its outlook for Block (XTRA:SQ3) from Overweight to Equal-Weight.

Analyst Price Forecast Indicates Significant Potential

As of April 24, 2025, the average one-year price target for Block stands at €75.73 per share. Predictions range from a low of €45.17 to a high of €112.88. This average price target suggests a potential increase of 47.16% from its last reported closing price of €51.46 per share.

Financial Projections for Block

The projected annual revenue for Block is €27.352 billion, reflecting a growth of 14.27%. Additionally, the projected annual non-GAAP EPS is €3.27.

Institutional Ownership and Fund Sentiment

Currently, 1,813 funds or institutions hold positions in Block, an increase of 126 owners, representing a rise of 7.47% in the last quarter. The average portfolio weight dedicated to SQ3 by all funds has grown to 0.34%, a substantial rise of 105.68%. Over the last three months, total shares owned by institutions have increased by 4.68% to reach 458,094K shares.

Key Institutional Shareholders

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 17,548K shares, representing 3.14% ownership of Block. In the previous filing, the firm reported owning 17,637K shares, marking a decrease of 0.51%. However, its portfolio allocation in SQ3 increased by 24.14% over the last quarter.

JPMorgan Chase holds 17,237K shares, accounting for 3.08% ownership of Block. The firm’s previous filing indicated ownership of 15,888K shares, signifying an increase of 7.82%. Their portfolio allocation in SQ3 has grown by 34.59% over the last quarter.

VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 12,028K shares, representing 2.15% ownership. Its prior filing showed ownership of 11,757K shares, indicating an increase of 2.25%. This fund has increased its portfolio allocation in SQ3 by 28.54% in the last quarter.

Baillie Gifford owns 11,168K shares, or 2.00% of the company, up from 10,233K shares previously, reflecting an increase of 8.37%. The fund has increased its portfolio allocation in SQ3 by 41.87% over the last quarter.

Sands Capital Management holds 10,340K shares, representing 1.85% ownership. Previously, they owned 11,228K shares, which marks a decrease of 8.59%. However, this firm has still raised its portfolio allocation in SQ3 by 13.67% over the last quarter.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.