Brazil's StoneCo rises after JPM upgrades to 'overweight'

StoneCo

06/06/2024 15:44

** Payments processor StoneCo's  STNE.O  shares rise as much
4.2%, last up 2.5% at $13.56
    ** J.P.Morgan upgrades company's shares to "overweight" from
"neutral" on the back of appealing EPS potential and discounted
valuation
    ** Brokerage maintains $20 PT, which represents a 51.3%
upside to last close
    ** STNE's core payment business looks healthy and company
well positioned to capture more share in value-added services in
small- and medium-business segment - brokerage
    ** JPM sees underperformance of STNE shares post Q1 results
as unwarranted given quarter was mostly in line with brokerage's
estimates
    ** 10 of 17 brokerages rate stock "buy" or higher, 5 "hold"
and 2 "sell"; median PT $19.50 - LSEG
    ** As of last close, STNE shares down 26.7% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com))