What happened

Shares of Block (SQ -0.34%) surged sharply higher Tuesday, jumping as much as 12.4%. As of 11:34 a.m. ET, the stock was still up 12%.

The market was in full-on rally mode, which no doubt helped push the stock higher. However, another catalyst that helped fuel the fintech specialist's run was bullish commentary by a Wall Street analyst.

So what

Deutsche Bank analyst Bryan Keane significantly lowered his price target on Block stock, down to $95 from $155, while maintaining his buy rating on the stock. This new lower price point still represents potential gains for investors of more than 70%.  

While a lower price target normally wouldn't be reason to celebrate, it was what the analyst had to say about Block -- and more specifically Square's Cash App -- that got investors excited.

Keane was particularly pleased at the company's progress in recent months at connecting its three key ecosystems -- Square, Cash App, and Afterpay, the analyst wrote in a note to clients. He believes the most lucrative opportunity will come from greater acceptance of Cash App by merchants, which will help expand the app into a widely used digital wallet. He sees Cash App Pay as a "potential sleeping giant," which could help raise Cash App's gross profits margins to well above 20%, a potential boon to Block.

Now what

The analyst may be on to something. On the conference call to discuss its second-quarter results back in August, Block's management laid out its plans for expanding the capabilities of its ecosystem, which it believes will help the company "scale new products and drive deeper engagement," leading to increased margins and greater profitability.

Given its entry into multiple areas of fintech and the potential to expand its integrated offerings, the stock is currently a steal at just two times sales, the cheapest Block has ever been on a price-to-sales basis.