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Unveiling 6 Analyst Insights On StoneCo

Author: Benzinga Insights | April 19, 2024 10:01am

In the latest quarter, 6 analysts provided ratings for StoneCo (NASDAQ:STNE), showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

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

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $21.67, along with a high estimate of $23.00 and a low estimate of $20.00. Surpassing the previous average price target of $18.00, the current average has increased by 20.39%.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of StoneCo's perception among financial experts is painted 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
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
Kaio Prato UBS Announces Neutral $21.00 -
Otavio Tanganelli Banco Bradesco BBI S.A Announces Neutral $23.00 -
Tito Labarta Goldman Sachs Raises Buy $21.00 $12.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to StoneCo. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of StoneCo's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on StoneCo analyst ratings.

Delving into StoneCo's Background

StoneCo Ltd is a provider of financial technology solutions. The company offers solutions that empower merchants to conduct electronic commerce seamlessly across in-store, online, and mobile channels in Brazil. Its Stone Business Model combines advanced, end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service.

Breaking Down StoneCo's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: StoneCo displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 25.35%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in 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 13.84%, 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 2.94%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): StoneCo's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.97%, the company showcases efficient use of assets and strong financial health.

Debt Management: StoneCo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.33.

The Significance of Analyst Ratings Explained

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.

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.

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

Posted In: STNE

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