Shares of fintech company Block(NYSE: SQ) rose today after Piper Sandler analyst Arvind Ramnani assumed coverage of the stock, with an overweight rating and price target of $83, according to reports.
Block's stock made gains early in the day and was up by 11.9%, as of 3:34 p.m. ET.
Impressive businesses tapping into large markets
Ramnani mentioned in his investor note that Block has been adept at creating new businesses, including its crypto business, as well as tapping into large fintech markets. The analyst believes that Block's Square payments business has a total addressable market of $130 billion, and that its Cash App payment app is tapping into a $75 billion market.
The analyst is optimistic that Block will continue to benefit as consumers and businesses move further into electronic payments, and believes the company's Square and Cash App segments are at the leading edge of innovation.
The positive sentiment toward Block comes after the company reported its third-quarter financial results last week. Block reported mixed results, with adjusted earnings per share of $0.88 that were in line with Wall Street's consensus estimate, but revenue of $5.9 billion missed estimates of $6.2 billion. That caused Block stock to dip last week, but investors are feeling optimistic again today.
This could be giving Block an additional boost
In addition to the analyst's comments, some investors are likely optimistic about Block today, as the price of Bitcoin has jumped to $86,900, as of this writing.
Investors can easily buy and sell Bitcoin in Block's Cash App, and the company owns about $630 million worth of the cryptocurrency. Block hasn't been shy about its bullish position on Bitcoin, and the company is investing in Bitcoin mining and has a digital wallet product called Bitkey.
With positive comments from an analyst and rising Bitcoin values, it's not surprising to see Block's stock jump today.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool has a disclosure policy.
