Shares of fintech company Block (NYSE:SQ) rose today after that Piper Sandler Analyst Arvind Ramnani assumed coverage on the stock, with an overweight rating and price target of $83, according to reports.
Block’s shares posted gains early in the day, rising 11.9% as of 3:34 PM ET.
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Ramnani mentioned in his investor note that Block is adept at creating new businesses, including its crypto business, and tapping into major fintech markets. The analyst believes that Block’s Square payments business has a total addressable market of $130 billion, and that its Cash App payments app taps into a $75 billion market.
The analyst is optimistic that Block will continue to benefit as consumers and businesses increasingly make electronic payments, and believes the company’s Square and Cash App segments are at the forefront of innovation.
The positive sentiment toward Block comes after the company reported its third-quarter financial results last week. Block reported mixed results, with adjusted earnings per share of $0.88 in line with Wall Street’s consensus estimate, but revenue of $5.9 billion fell short of estimates of $6.2 billion. That caused Block shares to fall last week, but investors are optimistic again today.
In addition to the analyst’s comments, some investors are likely bullish on Block today as the price of Bitcoin has risen to $86,900 at the time of writing.
Investors can easily buy and sell Bitcoin on Block’s Cash App, and the company owns approximately $630 million worth of cryptocurrency. Block has not been shy about its bullish position on Bitcoin, and the company invests in Bitcoin mining and has a digital wallet product called Bitkey.
With positive analyst commentary and rising Bitcoin values, it’s not surprising to see Block’s stock soaring today.
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