Truist Securities upgraded Block Inc. (NYSE: XYZ) from Hold to Buy and raised its price target to $68 from $67, saying the recent pullback in shares had improved the company's risk/reward profile ahead of its upcoming Investor Day.

The analysts noted that Block shares had fallen 21% over the past three months, creating a more favorable entry point. While still cautious about credit risk and the rapid expansion of the company's Cash App Borrow product, Truist said the Square segment's underlying performance was improving.

The firm added that Block's current valuation already reflected some of the risks associated with its shift toward lending-driven revenue. Truist also raised its 2026 adjusted EPS forecast to $3.28—slightly above Street expectations of $3.25—and said its revised target implied roughly 12% upside from current levels.