An Investment Firm That Manages $10 Billion In Assets Sees A ‘Reset In Payments’ – And Picks Jack Dorsey’s Block As Top Bet

• Loop Capital initiated coverage of Block with a Buy rating and $75 price target.
• The firm expects near-term volatility after a 40% workforce reduction but sees continued profit growth.
• Loop remains selectively bullish on payments stocks, including Block, Mastercard, and Visa.

Loop Capital, a Chicago-based investment firm, initiated coverage of Block Inc (XYZ) with a Buy rating and a $75 price target on Tuesday, as part of a broader research note launching coverage on payments stocks.

According to TheFly, Loop Capital, which manages roughly $10 billion in assets, said Jack Dorsey’s Block Inc. was well-positioned in point-of-sale tools and continued to see growth in active users, supporting its bullish stance on the stock.

Wall Street analyst Dominick Gabriele said investors should expect near-term volatility as markets digest Block's recently announced 40% workforce reduction. Despite the headcount cut, Loop expects the company to maintain above-industry gross profit growth as it works to resume growth in monthly transacting active users, according to the research note.

Block’s stock was trading up 2% in early trading. On Stocktwits, the retail sentiment around XYZ remained in the ‘neutral’ territory, while chatter levels around it improved from ‘extremely low’ to ‘low’ over the past day.

Loop Bullish On Payments Sector

Loop Capital said the significant reset in both expectations and valuations across the payments sector has the firm leaning positive on the group as a whole, though it warned the space remains subject to high volatility and that investors must be selective. The firm said a new beginning could materialize in the second half of 2026 and into 2027 if investors regain confidence in the stability of revenue and earnings growth across the sector.

In order of preference, Loop initiated coverage for Block at Buy with a $75 price target, Jack Henry (JKHY) at ‘Buy’ with a $197 price target, Mastercard (MA) at ‘Buy’ with a $631 price target, Visa (V) at ‘Buy’ with a $387 price target, Fiserv (FISV) at ‘Hold’ with a $62 price target, PayPal (PYPL) at ‘Hold’ with a $46 price target, and Toast (TOST) at ‘Hold’ with a $26 price target.

The coverage came as Block expanded its services into payments infrastructure yesterday, including an initiative to bring Bitcoin (BTC) into everyday transactions. The move aligned with the company’s broader strategy of positioning Bitcoin as a usable payment network rather than just a traded asset.

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