A growing list of headwinds is beginning to signal worry for Jack Dorsey’s Block , according to KBW. The firm downgraded Block to market perform from outperform, citing pressure from small risks that are putting pressure on the stock. KBW also lowered its price target on Block shares to $75 per share from $90. The new target implies upside of 10% from Thursday’s close. “We think SQ’s risk/reward profile has become less attractive as multiple risks are starting to add up,” KBW’s Steven Kwok wrote. “The big items revolve around rising competition within acquiring, and potential for regulatory scrutiny within its Cash App segment.” SQ YTD mountain Shares of Jack Dorsey’s Block are up on the year, although small-scale headwinds remain. Shares of Block closed at $68.10 per share on Friday, and have gained roughly 8% this year. KBW added that some of Block’s sources of income, which include unregulated interchange and instant deposit fees derived from the company’s CashApp segment, are “not-so rock solid.” The firm also noted growing competition in the the acquiring space could add further pressure to the company, specifically from payment facilitators, which similarly process transactions for merchants. “This could pressure volume growth, take rates, and ultimately profitability,” Kwok said. “Furthermore, SQs strength in its Seller business is rooted in its in-store offering, and as more goods are solid online, this could shift purchase volume to marketplaces and eComm focused platforms like Shopify.” Last month , shares of Block saw a massive 15% single-day decline after Hindenburg Research said the company was included in its list of shorts over the prominence of illicit activity on CashApp. While KBW seems pleased with Block’s response to regulators, the firm said the allegations warrant attention nonetheless. “But all the same, regulators looking for a win could step in to mandate more stringent practices,” Kwok said. — Tech Zone Daily’s Michael Bloom contributed to this report.