Shares of Square’s parent company Block fell 3.2% on Monday after analysts at KBW downgraded their rating on the stock from ‘Outperform’ to ‘Market Perform.’
The analysts awarded Block a price target of $75. The company's shares are currently trading at about $65.93.
“We think SQ's risk/reward profile has become less attractive as multiple risks are starting to add up,” the analysts said in a note to clients, as reported by Investing.com.
The analysts reportedly see a number of “growing risks” around the fintech's Cash App that they said are likely to “keep investors out of the name over the next year, primarily around rising competition in acquiring, and potential for regulatory scrutiny.”
Block shares tumbled by double digits to about $63 per share in late March after short-seller Hindenburg Research alleged the company was misleading investors with inflated metrics.
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