Block Emerges as a Leading Investment Choice for 2026

A significant endorsement from Wall Street has placed Block in the spotlight this week. The financial technology firm has been designated a "Top Pick" for the coming year by investment bank TD Cowen. This strong recommendation coincides with reports of increased buying activity by institutional investors, reinforcing a bullish sentiment.

Recent activity from major funds provides a tangible backdrop to the optimism. Institutions including M&T Bank Corp and Arrowstreet Capital have reportedly substantially increased their holdings in Block. These moves suggest that professional investors also view the stock as undervalued relative to its future growth trajectory.

The catalyst for this renewed focus is a fresh analysis from TD Cowen. On Monday, analyst Bryan Bergin reaffirmed his "Buy" rating and established a price target of $91 per share. This figure implies an upside potential of approximately 49% from current trading levels. Bergin bases his positive outlook on Block's improved operational execution throughout 2025. He anticipates that the combined strengths of its two primary ecosystems—Cash App for consumers and Square for merchants—will drive significant earnings growth in the upcoming year.

Should investors sell immediately? Or is it worth buying Block?

Financial Backdrop and Competitive Landscape

This vote of confidence arrives within a highly dynamic fintech sector. While competitors such as Western Union explore blockchain innovations, Block is already considered a pioneer due to its early integration of Bitcoin. The company's financial foundation appears solid, having reported third-quarter results where both profit and revenue exceeded market expectations.

Despite these strengths, Block's shares continue to trade notably below their 52-week high and have been consolidating for some time. The current price-to-earnings ratio of roughly 12.3 reflects a degree of investor caution, indicating the market has not yet fully priced in the growth narrative. However, the "Top Pick" designation from TD Cowen signals that analysts may now view the company's previous execution challenges as resolved.

The broader analyst community maintains a favorable stance. Approximately two-thirds of covering banks recommend purchasing the stock, with an average price target near $83. The next critical test will be the upcoming year-end quarterly report, which will reveal whether Block capitalized on the expected robust holiday shopping season.