UBS analysts downgraded Block (NYSE:SQ) from a Buy to a Neutral rating while also lowering the stock's price target from $102 to $65. This change in stance is driven by the analysts’ belief that the company's slowing growth will constrain any significant upward movement in its share price.

The analysts explained in their research note that Block's gross profit growth is expected to decelerate in the latter part of 2023 and in 2024. This deceleration is attributed to factors such as a decrease in consumer discretionary spending, a slowdown in the growth rate of Cash App monthly active users, and a moderation in Cash App monetization rates.

The analysts also pointed out that, despite Block's consistent improvement in profitability and its track record of surpassing quarterly adjusted EBITDA expectations, investors seem to be more concerned about the company's potential for gross profit growth.