Here's Why Barclays Boosted Its Estimates For Block

• Barclays analyst Ramsey El-Assal raised his estimates for Block Inc (NYSE:SQ) gross profit and EBITDA as the fintech quietly raised the pricing on its Cash App's Instant Deposit feature.
• The feature is "one of Cash App's biggest drivers of gross profit."
• The change "appears to be effectively a ~17% increase over prior rates," Ramsey said in a note to investors.
• The price increase could produce an upside of $63 million -$170 million in FY2022 gross profit and drive an EBITDA increase of 7.1%-19.1%.
• According to Cash App's terms and conditions, the pricing for Instant Deposit is currently 0.5%-1.75%, with a minimum fee of $0.25 versus its prior pricing of 1.5%. 
• Ramsey has an Overweight rating on Block.
• Price Action: SQ shares closed higher by 3.21% at $100.64 on Tuesday.