What happened
Shares of the financial technology (fintech) company Block (NYSE: SQ) were climbing higher today after an analyst at KeyBanc raised his price target for the company's stock from $175 to $180.
The tech stock is up 7.9% as of 12:02 p.m. ET.
So what
KeyBanc analyst Josh Beck maintained his overweight rating on Block's stock and raised his price target based on the company's position in fintech, the buy-now-pay-later (BNPL) market, and cryptocurrencies.
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"Block is well-positioned to benefit from a shifting FinTech industry landscape that favors two-sided ecosystem synergies, BNPL-driven commerce, SuperApps, and crypto optionality, thus we continue to recommend SQ as a key idea," Beck said in the investor note.
Beck noted that the company's purchase of Afterpay, a BNPL company, offers significant synergies for Block's business. The company closed on its Afterpay acquisition at the end of January, which will allow sellers to offer customers the option of paying later for purchases.
Now what
Today's share price jump is a welcome change from the company's huge share price plunge of 39% over the past six months. Growth stocks like Block have been tumbling recently as investors process a lot of news about rising interest rates, inflation, and the war in Ukraine.
While it's hard to watch a company's share price fall so hard, Block investors may want to find some solace in Beck's note today and stay focused on the company's long-term prospects.
