Block stock (NYSE:SQ), a former high-flier in the fintech business, has had its analyst price target slashed for the second time in as many days. Investors were not happy, and on Tuesday, they showed how unhappy they were by sending the company’s stock down about 6%.
So, What Happened to Block Stock?
Credit Suisse’s Timothy Chiodo decreased his price objective by $20 to $105 per share on Tuesday. On the other hand, Chiodo remains in the Block stock (NYSE:SQ) camp, having maintained his outperform (read: buy) rating. His reasons for the change were not immediately clear.
That wouldn’t necessarily have prompted many investors to sell, but the Credit Suisse note followed another prognosticator’s identical move on Monday. This was Keefe Bruyette’s Sanjay Sakhrani, with a more significant reduction from $100 to $78 per share. Sakhrani, like Chiodo, remains bullish on Block stock (NYSE:SQ) prospects by keeping his own outperform rating.
Sakhrani, like many other analysts following financial equities, is worried about the broader macroeconomy; after all, firms like Block are directly exposed to it. A dimmer consensus prognosis for the future of the US economy prompted his price target reduction; however, he hoped to define the basic fundamentals for the payments sector as “pretty steady.”
So, what now?
These voices of worry indicate investor concerns about corporations that are inextricably tied to the larger economy. Rising interest rates are a source of worry, as is the persistent inflation that has occurred despite recent Federal Reserve interest rate rises. We expect Block stock (NYSE:SQ) and its fintech colleagues to remain unpopular with investors until the climate significantly improves.
Featured Image – Megapixl © Selagin
Author Okoro Chinedu 
