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Analysts there told investors in a note that the risk/reward at current levels is unfavorable, while they also have concerns about the current market conditions.
“We are stepping aside on Block as our concerns around the macro environment now eclipse our ongoing enthusiasm around prospects for long-term growth,” said the analysts.
“We see odds on the rise for a hard landing in the US in 2H23, as a retreat by regional banks applies additional pressure directly on consumers and SMBs, who are already under duress from higher interest rates.”
The analysts also noted that the stock has “lagged the market coming out of a decent earnings print last week,” as they believe investors are already likely coming to terms with a lower earnings trajectory in 2024.
