Assessing StoneCo: Insights From 6 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on StoneCo (NASDAQ:STNE) in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	2	0	3	1	0
Last 30D	0	0	1	0	0
1M Ago	1	0	0	0	0
2M Ago	0	0	1	1	0
3M Ago	1	0	1	0	0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $11.67, a high estimate of $15.00, and a low estimate of $6.00. This current average reflects an increase of 8.26% from the previous average price target of $10.78.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of StoneCo among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |John Coffey |Barclays |Raises |Equal-Weight | $13.00|$12.00 | |Gustavo Schroden |Citigroup |Raises |Buy | $15.00|$9.00 | |John Coffey |Barclays |Raises |Equal-Weight | $12.00|$10.00 | |Jorge Kuri |Morgan Stanley |Raises |Underweight | $6.00|$5.70 | |Tito Labarta |Goldman Sachs |Lowers |Buy | $14.00|$16.00 | |John Coffey |Barclays |Lowers |Equal-Weight | $10.00|$12.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to StoneCo. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of StoneCo compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of StoneCo's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into StoneCo's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on StoneCo analyst ratings.

Get to Know StoneCo Better

StoneCo Ltd is a provider of financial technology solutions. It serves MSMBs great solutions, at fair prices, and provides the customer experience to help them manage their businesses and sell more. Its Stone Business Model combines end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service. It has two segments Financial Services offers payments, digital banking, and credit solutions, focusing Ton solution mainly on micro-merchants, and Stone solution on SMBs. In Software, it offers POS and ERP solutions for different retail and services verticals, Customer Relationship Management, engagement tools, e-commerce, and Order Management System solutions, among others.

StoneCo: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining StoneCo's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.63% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -83.7%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): StoneCo's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -21.6%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): StoneCo's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -5.47%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: StoneCo's debt-to-equity ratio is below the industry average. With a ratio of 1.1, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.