One of the more liked and lucrative fintech stocks in our time, Block (SQ -0.99%), wasn't in favor on Friday. The company's shares ended up trading down by more than 2%, a steeper fall than that of the S&P 500 index, "thanks" to a pair of analyst price target cuts.
Of the two chops, that from Royal Bank of Canada's RBC Capital was the deeper. Analyst Daniel Perlin lowered his price target to $203 per share from the previous $295. But he still believes in the stock, as he's maintaining an outperform (read: buy) recommendation on it.
The same can be said for Truist Securities' Andrew Jeffrey, who's keeping his buy tag on Block stock despite a $65-per share target price slash.
This follows a pattern, as other analysts have also trimmed their price estimations for the shares in recent weeks. One example is Susquehanna's James Friedman, who trimmed his target on the fintech from $300 to $275, citing the outperformance of the company's popular Cash App following its 2019 redesign. By comparison, it should under-perform in the coming periods, affecting Block's overall profitability.
While analysts and investors are right to be concerned about certain aspects of Block's business -- particularly since its core client base of relatively small businesses is struggling with the spread of the coronavirus' omicron variant -- the company is still showing impressive growth.
And other investors are piling in. No less a stock market star than Cathie Wood is bullish on the shares. Clearly undeterred by these recent bearish swipes, on Tuesday and Thursday alone her ARK Innovation ETF bought a combined 426,083 shares of Block for its portfolio.