HSBC upgrades Block stock rating on workforce cuts, raises price target to $77
#HSBC #Block stock #Workforce cuts #Price target #Earnings estimates #Stock upgrade #NYSE:XYZ #Corporate efficiency
📌 Key Takeaways
- HSBC upgraded Block to Buy with $77 price target following workforce reductions
- Block cut nearly 50% of its workforce, expected to boost earnings power
- HSBC raised 2026 EPS estimate by 16% to $3.41
- Multiple other analysts have also upgraded Block with price targets ranging from $72 to $90
📖 Full Retelling
HSBC upgraded Block Inc. (NYSE:XYZ) to Buy from Hold on March 3, 2026, raising its price target to $77 from $70, citing increased earnings power following workforce reductions. The financial institution's positive assessment comes as Block's stock currently trades at $64.45, down 22% from its 52-week high of $82.50, though it has surged 26% over the past week. HSBC analysts noted that the company's reduction of nearly half its workforce should meaningfully increase earnings power while financial performance and growth trends remain healthy. The bank raised its 2026 adjusted operating earnings estimate by approximately 20% and its adjusted earnings per share estimate by approximately 16%, roughly in line with company guidance. Block's earnings per share of $2.10 over the last twelve months is expected to jump to $3.41 in fiscal 2026, with management indicating that earnings power improvements from the headcount reduction would not be fully reflected until the second half of 2026. According to InvestingPro analysis, Block appears undervalued at current levels based on its Fair Value assessment, with HSBC noting that the combination of healthy gross profit growth, operating margin expansion, and a material de-rating of the stock in the past year has created an attractive risk-reward profile.
🏷️ Themes
Corporate Restructuring, Financial Analyst Ratings, Stock Market Performance
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HSBC
British multinational bank group
HSBC Holdings plc (Chinese: 滙豐; lit. 'focus of wealth') is a British universal bank and financial services group headquartered in London, England, with historical and business links to East Asia and a multinational footprint. It is the largest Europe-based bank by total assets, ahead of BNP Paribas,...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil extends surge on concerns surrounding Strait of Hormuz closure Futures drop, oil prices climb amid Iran conflict - what’s moving markets Gold dips, reverses course as stronger dollar weighs amid Iran conflict Gold price surge after Iran attack could fade, Pepperstone says FLASH SALE (South Africa Philippines Nigeria) FLASH SALE HSBC upgrades Block stock rating on workforce cuts, raises price target to $77 By Investing.com Analyst Ratings Published 03/03/2026, 03:59 AM HSBC upgrades Block stock rating on workforce cuts, raises price target to $77 0 XYZ 1.18% Investing.com - HSBC upgraded Block Inc. (NYSE:XYZ) to Buy from Hold on Wednesday and raised its price target to $77 from $70, citing increased earnings power following workforce reductions. The stock currently trades at $64.45, down 22% from its 52-week high of $82.50, though it has surged 26% over the past week. The company reduced nearly half of its workforce, which HSBC said should meaningfully increase earnings power. The reduction occurred while financial performance and growth trends remain healthy. HSBC raised its 2026 adjusted operating earnings estimate by approximately 20% and its adjusted earnings per share estimate by approximately 16%, roughly in line with company guidance. The company’s earnings per share of $2.10 over the last twelve months is expected to jump to $3.41 in fiscal 2026. Management indicated that earnings power improvements from the headcount reduction would not be fully reflected until the second half of 2026, with approximately 60% of expected 2026 adjusted operating earnings occurring in that period.According to InvestingPro analysis, Block appears undervalued at current levels based on its Fair Value assessment. Investors seeking additional undervalued opportunities can explore the platform’s most undervalued stocks list . HSBC’s fourth quarter 2026 adjusted EPS estimate of $1.16 amounts to $4.61 on an annualized basis...
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