Block Stock Just Scored a Double Upgrade From Piper Sandler. Here’s Why.

Block (XYZ) made headlines on June 30 following a bold call from Piper Sandler analyst Bill Carcache, who believes that the company’s shares are significantly undervalued at present levels. Carcache upgraded the fintech firm to “Overweight” and raised his price target to $100, suggesting a potential upside of over 30% from the current price.

This bullish outlook is particularly noteworthy considering that Block’s stock has already surged more than 50% from its year-to-date low in mid-February. Carcache’s optimism is rooted in the company’s gross profit growth and margin expansion, despite a challenging macroeconomic environment that is putting pressure on fintech valuations in 2026.

In his research note, Carcache highlighted Block’s ability to maintain strong network activity, deepen daily consumer interactions, and effectively manage credit risk. He no longer views XYZ as a cyclical payments firm but as a deeply embedded ecosystem poised to drive higher margins and structural operating leverage.

Moreover, historical data shows that Block has historically closed July with an average gain of nearly 12%, making it an even more appealing investment in the short term. Piper Sandler’s confidence in Block shares also stems from the company’s aggressive, AI-driven corporate overhaul. The company has streamlined internal operations, reduced management layers, and implemented widespread automation to accelerate software feature rollouts across Cash App and Square.

This operational efficiency is expected to transform Cash App into a primary banking account, driving stickier and more profitable deposits. The shift towards an AI-native workforce positions Block to expand profit margins steadily while scaling its ecosystem. While Piper Sandler is the most bullish on Block, other Wall Street firms also maintain a positive outlook on XYZ stock.

In conclusion, Block (XYZ) is a stock to watch as it continues to attract attention from analysts and investors alike. With a strong growth trajectory and a focus on operational efficiency, the company is well-positioned to deliver value to shareholders in the long run.