UBS downgraded shares to neutral from buy, citing a limited growth outlook
There's limited upside potential ahead for Block as a softening consumer discretionary spending outlook will likely slow down gross profit growth for the Square and Cash App parent, according to UBS. Analyst Rayna Kumar downgraded shares to neutral from buy. She also lowered her price target to $65 from $102. The new price target implies just 10.4% upside from where shares closed on Tuesday.
According to the analyst, Cash App is seeing a slowdown in monthly active user growth and moderation in monetization rates. UBS expects restaurant sales growth to slow down to 5% from 8% by 2024. Non-grocery retailer sales will also likely fall, the bank said. To be sure, the analyst added that Block shares are trading "near a 5-year low EV/Gross Profit multiple of 4x," suggesting the market has largely priced-in gross profit slowdown.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Most at risk': UBS downgrades 2 major automakers over China EVs threatThe investment bank warned that Europe's biggest automakers are set to lose market share to Chinese firms such as Warren Buffett-backed BYD.
Read more »
UBS to absorb Credit Suisse's Securities Research offeringUBS will absorb Credit Suisse's Securities Research service later in September, wrapping the business into its own research operations, the bank said in a letter.
Read more »
UBS may try to renegotiate deal terms with Apollo after sale of securitized products unit: BloombergUBS AG executives may seek to renegotiate the sale Credit Suisse’s securitized products unit (SPG) to Apollo Global Management Inc. partly because of the...
Read more »
UBS CEO insists bank not too big after Credit Suisse takeover By ReutersUBS CEO insists bank not too big after Credit Suisse takeover
Read more »
UBS CEO insists bank not too big after Credit Suisse takeoverThe new expanded UBS is not too big for Switzerland following the bank's emergency takeover of fallen rival Credit Suisse, Chief Executive Officer Sergio Ermotti said on Tuesday.
Read more »
BYD Introduces Seal In Munich, Said To Have A 15% Price Edge Over TeslaBYD’s new Seal sedan is said to match European competitors at a sharply lower price. UBS said the Seal has a 15% edge over Tesla, BYD a 30% edge over Europeans.
Read more »