Baird Upgrades This Fintech Stock, Calls for More Than 30% Upside — Should You Buy Now?

Baird upgrades Block Inc. (SQ) stock, projecting over 30% upside. Discover why analysts are bullish on this fintech giant and what it means for investors in 2025.

The world of fintech is buzzing again, and this time, it’s not about crypto or interest rates. It’s about a bold call from Baird, a respected financial services firm, that has upgraded a major fintech stock and is now predicting a potential upside of more than 30%. That’s a big statement — and investors are paying attention.

But what’s really driving this bullish upgrade? Which company is Baird so confident about? And most importantly, should you consider investing too?

Let’s break it all down — in real terms, with real insights — and explore what this could mean for your portfolio.

🚨 The Big News: Baird Upgrades Block Inc. (NYSE: SQ)

In early July 2025, Robert W. Baird & Co. upgraded shares of Block Inc. (formerly known as Square) from Neutral to Outperform, raising its price target from $78 to $105. That’s a 34% projected upside from the stock’s recent trading price of around $78.

For those unfamiliar, Block Inc. is a major player in the fintech world. It’s the parent company of:

• Square (small business payments),
• Cash App (peer-to-peer money transfers),
• Afterpay (buy-now-pay-later),
• and TIDAL (yes, the music streaming platform, though it’s a small piece of the puzzle).

So why is Baird suddenly so bullish?

📈 What’s Behind the Upgrade?

According to Baird analysts, there are three main catalysts that justify their upgraded outlook for Block:

1. Cash App Growth Is Accelerating

Despite a slowdown during the 2022–2023 bear market, Cash App has made a strong comeback. With increased adoption among Gen Z and millennials, monthly active users are surging again, and revenue per user is on the rise.

Baird noted that Cash App is “emerging as a true ecosystem,” where users not only send and receive money but also invest, pay bills, get direct deposits, and even file taxes.

This ecosystem approach is creating stickier customers and more recurring revenue.

2. Margin Expansion From Cost Cutting

Block spent the past 18 months cutting unnecessary spending, laying off nearly 10% of its workforce, and restructuring its operations. This helped improve its gross profit margins, a key concern for investors last year.

“Management has demonstrated improved discipline, which we view positively given the macro environment,” Baird analysts wrote.

3. Crypto Recovery & Bitcoin Exposure

Let’s not forget: Block holds a significant amount of Bitcoin on its balance sheet and generates revenue from Bitcoin transactions within Cash App. With Bitcoin prices rebounding in 2025, Block’s crypto-related revenue is once again on the rise — adding an extra growth lever that most fintechs don’t have.

💡 Why This Matters to You (The Individual Investor)

If you’re an investor looking for growth opportunities in fintech, this upgrade could be a signal worth paying attention to.

Let’s face it — the stock market is tricky in 2025. Between interest rate uncertainty, inflation jitters, and a possible soft landing for the U.S. economy, many investors are seeking companies with real growth potential but also resilience. Block fits that profile.

Here’s why:

• ✅ It has multiple revenue streams (Payments, Cash App, Crypto, BNPL).
• ✅ It serves both consumers and small businesses.
• ✅ It’s already profitable and focused on long-term scalability.

That’s the kind of versatility Wall Street tends to reward — especially in volatile times.

🧠 What Other Analysts Are Saying

Baird isn’t alone in its optimism. Several other firms have recently upgraded their price targets for Block:

• Morgan Stanley: $100 (Overweight)
• Goldman Sachs: $110 (Buy)
• Barclays: $98 (Equal Weight)

Consensus among analysts is shifting. While the fintech sector was beaten down in 2022–2023, 2025 appears to be the beginning of a rebound — and Block is leading that charge.

💼 CEO Jack Dorsey’s Comeback Strategy

Let’s talk leadership. Jack Dorsey, who also co-founded Twitter (now X), has been doubling down on Block’s mission to create economic empowerment through decentralized tools.

He’s focused on:

• Bitcoin integration, making crypto more mainstream
• Open-source financial infrastructure
• Simplified money movement for underserved communities

Dorsey has faced criticism in the past for being too visionary and not focused enough on execution. But in 2025, he’s proving that vision and results can coexist. Investors like Baird are recognizing that.

📊 A Look at the Financials (as of Q2 2025)

Here’s a snapshot of Block’s latest financial performance:

Block has exceeded Wall Street expectations for two consecutive quarters — a key factor in the Baird upgrade.

⚠️ The Risks You Should Know

No stock is without risk. And fintech, in general, is still susceptible to regulatory scrutiny, economic headwinds, and competitive pressures.

Some key risks with Block include:

• 📉 Competition from PayPal, Apple Pay, and other emerging platforms
• 🏛️ Regulatory risk, especially around crypto
• 💰 Valuation volatility in a rising interest rate environment

But Baird believes these risks are already priced into the stock, and the upside potential outweighs the downside — especially at the current valuation.

📌 Should You Buy the Stock?

Here’s a quick decision matrix:

If you believe in the long-term digital transformation of finance, Block could be one of the most compelling fintech investments of the year.

🔮 Final Thoughts: Is This a Turning Point for Fintech?

Baird’s upgrade is more than just a stock call — it’s a vote of confidence in the future of fintech. And in particular, it shows renewed trust in companies that are innovating responsibly, streamlining costs, and expanding into areas like crypto and AI.

As the digital economy continues to evolve, companies like Block are redefining how Americans handle money — from spending and saving to investing and borrowing.

So, whether you’re a current investor or someone considering an entry point, this 30% upside prediction might be your signal to look deeper into one of 2025’s most intriguing fintech opportunities.

🧠 Key Takeaways

• Baird upgraded Block Inc. (SQ) with a 30%+ upside forecast.
• Key growth drivers include Cash App expansion, Bitcoin recovery, and cost discipline.
• Block is rebounding from a tough 2023 and is now a top pick for many analysts.
• Still, investors should be mindful of fintech risks like regulation and competition.
• This could mark a turning point for the fintech sector — and savvy investors are paying attention.

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