SMBC Nikko downgrades Block to Neutral into 'prolonged crypto winter' - InvestingChannel

SMBC Nikko downgrades Block to Neutral into ‘prolonged crypto winter’

SMBC Nikko analyst Andrew Bauch downgraded Block to Neutral from Outperform with a price target of $70, down from $120. The analyst cites the company’s “hard-to-quantify, but material” crypto exposure, lack of medium-term visibility, and uncertainty around the potential impact of its “more conservative” investment strategy on medium-term growth for the downgrade. A “prolonged crypto winter” may limit Cash App upside, Bauch tells investors in a research note. In addition, Block’s “short term focused” guidance strategy continues to “muddy” its medium-term visibility, contends the analyst. He thinks the shares will remain range bound in the near-term.

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