4 big analyst picks: Block a Buy after Q1

Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: Fresh upgrades for Block, Zscaler, Dropbox, and Ferguson.

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Block upgraded to Buy following better-than-expected Q1 earnings
PhillipCapital upgraded Block (NYSE:SQ) to Buy from Accumulate with a price target of $91.00 following Q1 earnings.

The company reported its Q1 results on Thursday, beating EPS and revenue estimates and raising its full 2023-year guidance. Subscription & services-based revenue jumped 43% to $1.37 billion, beating the consensus estimate of $1.28B.

The earnings beat shook off the U.S. short-seller Hindenburg Research’s disclosure in March of short positions in the firm, which resulted in a sharp stock price drop. The firm accused Block of exaggerating the number of its users by permitting fake or replicated accounts to remain active on its Cash App system.

Zscaler upgraded to Strong Buy, shares surge on preliminary Q3 beat
CFRA upgraded Zscaler (NASDAQ:ZS) to Strong Buy from Buy, as reported in real time by InvestingPro. Shares jumped more than 20% yesterday after the company’s preliminary Q3 results beat the consensus estimates. The company also raised its full 2023-year guidance.

2 more upgrades
Goldman Sachs upgraded Dropbox (NASDAQ:DBX) to Neutral from Sell and raised its price target to $25.00 from $22.00 following the company’s Q1/23 results that beat across all metrics.

According to the firm, Dropbox’s full-year guide is attainable, and the company has a healthy margin profile that is overlooked at current levels.

Jefferies upgraded Ferguson (NYSE:FERG) to Buy from Hold and raised its price target to $181.00 from $141.20.