Buy this payments company after investors bailed on the stock last week, Baird says

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Stock in this payments company should recover after a brief website outage last week, according to Baird.

Investors should think twice about fleeing Block stock after website connectivity issues, according to Baird Equity Research. The firm reiterated an outperform rating on Block in a Monday note, and designated shares as a bullish fresh pick. However, Baird lowered its price target on the stock to $72 from $92, or about 36% upside from Friday's $53.08 close. Shares of Block have pulled back more than 15% from the start of the year, including a 5.3% drop in Friday trading.

Analyst David Koning says shares may be oversold after the company experienced a temporary outage on its payment processor Square on Thursday and Friday , which triggered the selloff. "Historical breaches/outages generally haven't created long-term issues for large processors, as long as they were addressed/fixed," Koning said. The analyst added that payment issues at large firms like Block have typically abated in the short term and helped jumpstart a stock recovery.

 

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