Analysts rate StoneCo Ltd. (STNE:NSD) with a Hold rating and a $12 target

Wells Fargo lowered the STNE stock price target from $10 to $9 and rates it as equal-weight.

Based on the StoneCo stock forecast from 4 analysts, the average analyst STNE stock price target is USD 12.30 over the next 12 months. StoneCo Ltd’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of STNE stock forecast is Slightly Bullish, which is based on 6 positive signals and 5 negative signals. At the last closing, StoneCo stock price was USD 9.27StoneCo stock price has changed by +0.23% over the past week, -0.72% over the past month and -76.83% over the last year.

 

About StoneCo Ltd. (STNE:NSD):

StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical personnel and software vendors, as well as sells solutions to brick-and-mortar and digital merchants through sales team. As of December 31, 2021, the company served approximately 1,766,100 clients primarily small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands. StoneCo Ltd. operates as a subsidiary of HR Holdings, LLC.

 

Most Recent Analyst Ratings for STNE’s stock:

Target Lowered by Wells Fargo Equal Weight USD 10 » USD 9 2022-09-08
Downgrade Goldman Sachs Neutral » Sell USD 9.8 » USD 7.8 2022-09-06
Target Lowered by Wells Fargo Equal Weight USD 11 » USD 10 2022-08-19
Target Lowered by Susquehanna Bancshares USD 28 » USD 20 2022-07-11
Target Lowered by Goldman Sachs Neutral USD 19 » USD 12 2022-04-20
Initiated by Cantor Fitzgerald Securities Overweight USD 15 2022-04-08
Initiated by Wells Fargo Equal Weight 2022-04-04
Upgraded by Citigroup Neutral » Buy USD 15 2022-03-18
Target Lowered by Susquehanna Bancshares USD 35 » USD 28 2022-03-09
Downgrades HSBC Hold USD 16 2022-01-31
Downgraded by Goldman Sachs Buy » Neutral 2022-01-27
Target Lowered by Evercore ISI USD 58 » USD 30 2022-01-25
Downgraded by UBS Buy » Neutral USD 47 » USD 21 2022-01-04
Downgrades Credit Suisse Neutral USD 22 2021-12-23
Downgraded UBS Outperform » Market Perform 2021-12-16
Downgraded by Itau Unibanco Outperform » Market Perform 2021-12-16
Initiated by Scotiabank Capital Sector Perform USD 22 2021-12-01
Downgraded by Grupo Santander Hold » Underweight USD 17 2021-11-30
Downgraded by Banco Santander Sell USD 17 2021-11-30
Reiterated Bradesco Neutral » Underperform USD 49 » USD 17 2021-11-22
Target Lowered by Susquehanna Positive USD 90 » USD 65 2021-10-18
Target Lowered by HSBC Buy USD 85 » USD 65 2021-09-03
Target Lowered by Evercore ISI Outperform USD 100 » USD 84 2021-08-31
Initiated by New Street Research Neutral USD 82 2021-06-23
Target Lowered by Citigroup Neutral USD 69 » USD 66 2021-06-09

 

What we like:

Underpriced compared to book value:

STNE stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The Company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

StoneCo stock had positive total cash flow in the most recent four quarters.

Positive free cash flow:

StoneCo stock had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth:

STNE stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for STNE stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings;

STNE stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on free cash flow basis:

STNE stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

STNE stock has shown below median earnings growth in the previous 5 years compared to its sector.