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Highlights
Dominick J. Gabriele of Compass Point Research & Trading issues a SELL rating with a AUD 99.63 target.
Fahed Kunwar of Rothschild & Co. reiterates a SELL rating with a notably lower AUD 53.65 target.
XYZ's Q2 FY2025 results show 14% YoY gross profit growth and margin expansion, prompting Block to raise full-year guidance.
Block Inc (ASX:XYZ) is facing sharply divergent price targets from two high-profile analysts despite its recent Q2 FY2025 results.
On 8 August 2025, Dominick J. Gabriele of Compass Point Research & Trading LLC reaffirmed a SELL rating with a target price of AUD 99.63. This target, while below the current trading price of AUD 126.77, implies a moderate downside risk of about 21%.
Meanwhile, Fahed Kunwar of Rothschild & Co. Burnbern maintained an even more bearish stance, also with a SELL recommendation, but set a significantly lower price target of AUD 53.65. This figure signals a potential decline of nearly 58% from current market levels.
Q2 FY2025 Performance Overview
In the quarter ended June 30, 2025, Block posted AUD 3.89 billion (USD 2.54 billion) in gross profit — a 14% year-over-year increase, up from the 9% YoY growth achieved in Q1.
Adjusted Operating Income surged 38% YoY to AUD 842 million (USD 550 million), delivering a 22% margin.
Net income attributable to common stockholders reached AUD 823 million (USD 538 million), more than doubling the AUD 298 million (USD 195 million) reported in the same period last year.
Guidance Raised for FY2025
Buoyed by its quarterly performance, management lifted its full-year 2025 forecasts:
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Gross Profit: AUD 15.59 billion (USD 10.17 billion), up 14.4% YoY.
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Adjusted Operating Income: AUD 3.11 billion (USD 2.03 billion) at a 20% margin.
The guidance upgrade reflects confidence in customer engagement, transaction volume growth, and efficiency improvements, despite macroeconomic headwinds.
Despite Block’s recent operational performance, both Compass Point and Rothschild highlight valuation concerns.
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