What happened
On days like Wednesday, it's sometimes hard to remember that Block (SQ 0.25%) was once a high-flying darling of a fintech stock. The company's shares had a forgettable Hump Day, slipping by nearly 1.4% due to an analyst's price target cut.
So what
Toward the end of Tuesday's trading session, prognosticator Darrin Peller from Wolfe Research reduced his target on Block shares to $90 apiece. That represents quite the comedown, as his former level for the fintech was $125. Nevertheless, he's maintaining his outperform (i.e., buy) recommendation on the stock..
The reasoning behind Peller's change wasn't immediately apparent. What we can say is that his move isn't the only one made on Block stock in recent days.
Last Friday, CLSA's John Marrin also shaved his price target (to $97 per share from $122). Exactly one trading day after that, Keefe Bruyette analyst Sanjay Sakhrani also wielded a pair of scissors with a target cut to $100 from the preceding $150. Yet like Peller, both analysts are maintaining the equivalent of buy recommendations on Block.
Now what
Regardless, none of these adjustments are improving the general investor view of not only Block in particular, but fintech stocks as a group.
Many have sagged in price recently due to economic concerns such as inflation and the potentially negative effects of interest rate hikes from the Federal Reserve. Additionally, more than a few investors have gone on a "flight to safety," eschewing more speculative stocks for those considered to be defensive plays.
