Block (NYSE:SQ) shares rose more than 4% intra-day today after Bernstein SocGen Group analysts raised their price target on stock to $120 from $90, maintaining an Outperform rating. The upgrade reflected a series of anticipated growth drivers and a compelling valuation for the stock heading into 2025.

The analysts identified several key catalysts, including an acceleration in Square's Gross Payment Volume (GPV), a critical performance metric for the company. Additionally, Block was expected to achieve significant EBITDA growth, projected at 30%, driven by ongoing efficiency improvements. Lower regulatory scrutiny and the potential inclusion in the S&P 500 index were also noted as potential tailwinds.

Block's valuation appeared attractive, trading at 25x its projected 2026 GAAP price-to-earnings ratio. With 16% of its market cap in cash, the company was expected to generate an additional $3 billion to $3.5 billion in free cash flow, representing approximately 6% of its market cap, by the end of 2025. The analysts highlighted Block's ongoing $3 billion share buyback program as further evidence of its strong financial positioning and shareholder value initiatives.