Analysts Raise Price Targets on Block Stock Ahead of Q2 Earnings Report

Block Inc., led by Jack Dorsey, has seen its stock gain momentum this year, and Wall Street analysts are increasingly optimistic ahead of the company's second-quarter earnings report on August 5. Analysts have raised their price targets for Block's stock due to improving execution and resilient consumer spending across its two largest businesses: Square and Cash App.

Square is a payment solution for merchants, while Cash App offers consumer financial services. Wall Street expects Block to report adjusted earnings per share (EPS) of $0.87, up from $0.62 in the prior year period, with sales projected to rise 6.9% year-over-year to $6.47 billion.

Investors will closely watch the earnings report for signs that Square's merchant business continues to grow and Cash App keeps attracting users. The company also lets Cash App users buy, sell, and transfer Bitcoin, while holding it on its balance sheet.

Analysts such as Andrew Schmitt of KeyBanc have raised their price targets for Block's stock due to the company's strong performance. Schmitt expects another quarterly beat from Block, citing resilient consumer spending and continued product innovation.