Baird analysts maintained their Outperform rating on Block (NYSE:SQ) and upgraded it to a Bullish Fresh Pick designation in response to a recent market downturn.

Block recently faced technical challenges, resulting in a temporary outage of its website and connectivity issues for Square app users. Although these issues disrupted some sellers' access to accounts and payment processing, services began recovering by the following day.

While acknowledging investor concerns about the processing problem, Baird believes that the system is now back on track. They view the stock as oversold, trading at less than 3.5 times the estimated 2024 revenue, making it one of the most attractively valued options in their fintech coverage.

The analysts emphasized that their Bullish Fresh Pick designation is based on historical patterns where significant payment issues at major companies tend to be resolved swiftly, and stocks tend to bounce back.