Block rises after Truist Securities upgrades to 'buy'

Payments firm Block's XYZ.N shares rise 2.3% to $61.18 premarket

Truist Securities upgrades XYZ to "buy" from "hold"; raises PT to $77 from $72, implying a roughly 29% upside to stock's last close

Brokerage sees upside potential to Street margin expectations following XYZ's ~40% reduction in workforce

Says capital return could surprise to the upside as free cash flow generation improves

XYZ said last month it will cut over 4,000 jobs as part of an overhaul to embed artificial intelligence across its operations

"We are still keeping an eye on signs of intensifying competition among neobanks and SMB-focused acquirers, but we believe the current multiple takes both this and the heightened credit risk into account" - Truist analyst Matthew Coad

As of last close, XYZ stock down 8% YTD