Why is the Block (ASX:SQ2) share price going gangbusters today?

The Block Inc CDI (ASX: SQ2) share price is lifting today in what appears to be a positive day for the buy now, pay later (BNPL) sector.

Block shares are currently trading at $187.11, a 7% gain, after hitting an intraday high of $190.49. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 033% at the time of writing.

Let's take a look at what could be impacting Block today.

Broker upgrade in the US

Block's ASX shares are following in the footsteps of the company's New York Stock Exchange (NYSE) listed shares on Wall Street.

Mizuho analyst Dan Dolev upgraded the target price on the US listing of Block (NYSE: SQ) to $190 from $180. Block's NYSE listing surged 5.17% to $141.79 on the US market on Tuesday.

Mizuho reportedly upgraded the price target after conducting a survey that found Block's peer-to-peer payments app is considered a leading financial app by parents of teenagers.

More than two-thirds of parents had children using the payment app weekly or daily.

Commenting on the upgrade, Dolev said:

We estimate that Cash App may reach as many as 2-4 million of the (roughly) 20 million individuals aged 13-18 in the U.S.

Dolev maintains a buy recommendation on Block.

Analysts at Macquarie have recently provided Block's Australian-listed shares with an outperform rating and $230 price target, as my Foolish colleague James reported.

Block is not the only BNPL share to rise today. Zip Co Ltd (ASX: Z1P) is up 6.54% while Tyro Payments Ltd (ASX: TYR) shares have jumped 5.54% at the time of writing. The All Technology Index (ASX: XTX) is also up 2% after the positive performance of US tech shares overnight.

Block shares are recovering today after falling 5% yesterday, following a similar decline in the US amid inflationary pressures.

Block share price snapshot

The Block share price has gained 7% year to date, soaring nearly 48% in a month and 41% in the past week alone.

For comparison, the  S&P/ASX 200 Index (ASX: XJO) has shed around 1% year to date.

Block has a market capitalisation of about $9.1 billion.