4 analysts have shared their evaluations of StoneCo STNE during the recent three months, expressing 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 | 1 | 1 | 1 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 1 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $14.25, along with a high estimate of $19.00 and a low estimate of $7.00. This current average has decreased by 18.01% from the previous average price target of $17.38.
Breaking Down Analyst Ratings: A Detailed Examination
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 |
|---|---|---|---|---|---|
| James Friedman | Susquehanna | Lowers | Positive | $19.00 | $22.00 |
| John Coffey | Barclays | Lowers | Equal-Weight | $13.00 | $14.00 |
| Jorge Kuri | Morgan Stanley | Lowers | Underweight | $7.00 | $16.50 |
| Kaio Prato | UBS | Raises | Buy | $18.00 | $17.00 |
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: 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 navigate through adjustments in price targets, providing estimates for StoneCo's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
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.
Get to Know StoneCo Better
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.
A Deep Dive into StoneCo's Financials
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: StoneCo's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 11.86%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower 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 16.07%, 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 3.29%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): StoneCo's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.95%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.61, StoneCo adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: Simplified
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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