StoneCo gains after UBS raises to 'buy' rating

StoneCo

08/07/2024 14:12

** Brazilian payment processor StoneCo  STNE.O  shares rise
~3% to $12.72 premarket 
    ** UBS upgrades to "buy" from "neutral", citing improving
fundamentals supported by bundle offering with banking
    ** Brokerage cuts PT to $17 from $21 previously
    ** STNE is in line with its strategy to become the main
financial provider for SMBs in Brazil - Brokerage
    ** Brokerage continues to expect solid earnings growth at
+34%YoY in 2024E and +21% in 2025E, supported by the effects of
bundle offering and operating leverage
    ** 12 of 17 brokerages rate the stock "buy" or higher, 3
"hold" and 2 "sell" or lower; their median PT is $18 - LSEG
    ** Up to last close, STNE shares down 31.6% YTD

 (Reporting by Kanchana Chakravarty in Bengaluru)
 ((Kanchana.Chakravarty@thomsonreuters.com))