Block Inc (Square) stock draws fresh analyst buy ratings amid AI-driven margin optimism and pricing tweaks

Block Inc (Square), ISIN: US8522341036, sees UBS reiterate Buy with $190 target as shares trade at $59.37 on NYSE in USD, highlighting undervaluation and Square's U.S. pricing changes signaling gross profit acceleration. US investors eye AI efficiencies and Cash App growth for potential rebound.

Block Inc (Square) stock, listed on NYSE under ISIN US8522341036, has caught fresh analyst attention with UBS reiterating a Buy rating and $190 price target. Shares last traded at $59.37 USD on NYSE, well below targets from multiple firms, amid updates on Square's U.S. card-not-present pricing changes. These adjustments for legacy merchant plans point to accelerating gross profit growth into late 2026, bolstering margin outlook in a competitive fintech landscape. US investors should watch as AI integrations promise efficiency gains and product innovation, potentially driving earnings upside in payments and Cash App segments.

As of: 23.03.2026

By Elena Voss, Senior Fintech Analyst – Tracking payment platforms like Block where AI and pricing power redefine growth trajectories in real-time market shifts.

Recent Analyst Momentum Signals Undervaluation

UBS maintained its Buy rating on Block Inc (Square) stock, keeping the price target at $190 USD on NYSE. This comes as shares hover around $59.37 USD on the exchange, implying significant upside potential. The firm spotlighted Square's recent U.S. pricing tweak for card-not-present transactions, raising fees to 3.3% plus $0.30 from 2.9% plus $0.30 for merchants on legacy plans.

These plans cover older subscriptions like Square for Restaurants and Retail. While the gross profit lift appears modest, it evidences momentum in Square's profitability. UBS anticipates this will help close the gap between gross profit and payment volume growth in the second half of 2026.

Block reports a solid 43% gross profit margin and $2.10 EPS over the last twelve months. Such metrics underscore resilience despite market pressures. For US investors, this reaffirms Block's positioning in small business payments.

AI and Workforce Cuts Reshape Efficiency Narrative

Block's aggressive staff reductions, slashing 4,000 roles to reach 6,000 employees, dominate investor focus. Citi highlights AI's broader role beyond cuts, projecting it could drive gross profit outperformance. Their analysis forecasts 180 basis points above consensus in 2026, scaling to 440 basis points by 2028.

This could push consolidated gross profit growth to high-teens percentages. Citi sets a US$85 target, equating to 43% upside from $59.37 USD levels on NYSE. Applied to dynamics, AI accelerates product releases in Square and Cash App.

Other firms echo positivity. Truist upgraded to Buy with $77 target, citing margin expansion. RBC holds Outperform at $90, noting tax refund boosts for Cash App inflows. Morgan Stanley stays Overweight at $93, praising AI for efficiency and development speed.

BofA Joins with Buy Initiation on Transformed Outlook

BofA Securities launched coverage with Buy and $88 target, crediting AI-led workforce optimization. This follows Block's strategic pivot, enhancing organizational agility. The move positions Block to capitalize on fintech tailwinds.

Square's tiered pricing, introduced in October 2025, sets the stage for legacy plan migrations. Non-subscribers to Free, Plus, or Premium face higher online fees. UBS views this as supportive evidence for profit acceleration.

Historical data shows NYSE shares fluctuating, with recent opens around $58.56 USD and 52-week range from $44.27 to $82.50 USD. 50-day average sits at $60.41 USD, hinting at stabilization. US investors track these for entry points.

Why US Investors Should Prioritize Block Now

For US investors, Block represents a high-conviction fintech play amid AI adoption. Cash App benefits from seasonal inflows like tax refunds, per RBC. Square's pricing evolution targets small merchants, a core US demographic.

Profitability metrics shine with 43% margins. EPS at $2.10 trailing reflects operational strength. Analyst consensus points to undervaluation, with targets clustering above $80 USD on NYSE.

Broader market dispersion favors selective picks. Energy surges contrast software dips, but Block's payments moat endures. US exposure dominates revenue, making domestic trends pivotal.

Square Segment: Pricing Power Builds Momentum

Square's U.S. online fee hike applies to legacy users post-tiered rollout. This narrows GP-to-GPV growth disparity. UBS expects incremental support in H2 2026.

Merchant adoption remains key. Legacy plans phase-out encourages upgrades. Higher fees boost take rates without volume loss, per analyst views.

Competitive landscape includes PayPal and Stripe. Block differentiates via hardware-software integration. US small business reliance sustains demand.

Cash App and Ecosystem Synergies

Cash App inflows rise with tax season. RBC flags this as near-term catalyst. Afterpay integration expands BNPL within ecosystem.

AI enhances fraud detection and personalization. Morgan Stanley notes efficiency gains. Product roadmap accelerates via automation.

Cross-segment leverage grows. Square sellers funnel to Cash App banking. Network effects amplify retention.

Risks and Open Questions Ahead

Redemption pressures hit related funds like Stone Ridge's, honoring just 11% requests. This signals liquidity watchpoints in Block-originated loans. Regulatory scrutiny on consumer lending persists.

Macro headwinds include inflation and rates. Job volume sensitivity affects payments. Citi notes FY26 downside risks.

Execution on AI remains unproven. Workforce cuts risk talent loss. Competition intensifies in digital wallets.

Rothschild upgraded to Neutral at $55, cautious on valuation. Hudson Bay trimmed holdings. Balanced view tempers optimism.

52-week high at $82.50 USD on NYSE looms. Recent data shows volatility, with opens near $58-84 USD range. Investors weigh catalysts against uncertainties.

Block's path hinges on GP acceleration delivery. US investors assess if AI narrative sustains amid dispersion.

Disclaimer: This is not investment advice. Stocks are volatile financial instruments.