Block assumed with a Perform at Oppenheimer

Oppenheimer assumed coverage of Block with a Perform rating and no price target. The company’s growing Cash App user engagement and expanding solution set should continue to drive high-teens Cash App gross profit gains, the analyst tells investors in a research note. However, the firm believes Square’s relatively high exposure to discretionary consumer spend, small businesses and the non-affluent demographic make it more susceptible to a macroeconomic slowdown, limiting the stock’s upside potential. As such, it finds the stock fairly priced.