StoneX analyst Mark Palmer upgraded Block Inc. (XYZ) from Hold to Buy. Palmer also increased the price target for the company to $105.
The upgrade follows a strategic overhaul initiated by CEO Jack Dorsey seven months ago. This restructuring included a significant workforce reduction and a transition to an agentic intelligence operating model.
Palmer noted that the changes are driving faster shipping speeds and a leaner cost structure. The agentic AI platform has improved profit margins and created new avenues for growth during the restructuring phase.
Block also recently applied to form a federally supervised, uninsured national trust bank. This move indicates a period of significant strategic activity for the company.