Macquarie analyst Paul Golding downgraded Block to Neutral from Outperform with a price target of $64, down from $140. The analyst expects short-term pressure in the shares from consensus EBITDA estimate cuts. The consensus has underestimated Block’s operating costs, leading to an overestimation of adjusted EBITDA, Golding tells investors in a research note. Beyond estimate cuts, the analyst sees risk of multiple contraction. Given a shift away from unprofitable tech names, multiples will refocus from sales-based to EBITDA-based, and multiples below those from 2020s onwards will become the new norm, contends Golding. He forecasts Block’s EBITDA margins will trough in fiscal 2022 post the Afterpay integration before seeing a gradual recovery from fiscal 2023 onwards.