BMO Capital analyst Rufus Hone downgraded Block to Market Perform from Outperform with a price target of $100, up from $94. The firm says it is tougher to see gross profit upside from here. With the shares up 22% since the Q3 report, this year’s “beat/raise cycle” will prove difficult to sustain in 2025 and 2026, the analyst tells investors in a research note. BMO sees potential risk to Cash App gross profit growth expectations, and believes the “Rule-of-40” target for 2026 implies a high bar for profit per employee. It worries Block’s gross profit growth upside will become increasingly challenging to deliver without lifting the headcount cap.