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StoneCo Stock: A Deep Dive Into Analyst Perspectives (6 Ratings)

Author: Benzinga Insights | June 06, 2024 11:00am

Analysts' ratings for StoneCo (NASDAQ:STNE) over the last quarter vary from bullish to bearish, as provided by 6 analysts.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

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

Insights from analysts' 12-month price targets are revealed, presenting an average target of $19.67, a high estimate of $23.00, and a low estimate of $16.00. Observing a 1.39% increase, the current average has risen from the previous average price target of $19.40.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

The perception of StoneCo by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Yuri Fernandes JP Morgan Maintains Overweight $20.00 $20.00
John Coffey Barclays Lowers Equal-Weight $16.00 $17.00
John Coffey Barclays Lowers Equal-Weight $17.00 $18.00
James Friedman Susquehanna Lowers Positive $22.00 $23.00
Otavio Tanganelli Banco Bradesco BBI S.A Announces Outperform $23.00 -
Gabriel Gusan Citigroup Raises Buy $20.00 $19.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to StoneCo. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of StoneCo compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of StoneCo's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of StoneCo's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on StoneCo analyst ratings.

About StoneCo

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.

Key Indicators: StoneCo's Financial Health

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: StoneCo's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 15.45%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: StoneCo's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.65%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): StoneCo's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.52%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): StoneCo's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.74%, the company may face hurdles in achieving optimal financial returns.

Debt Management: StoneCo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.55.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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

Posted In: STNE