Analyst Expectations For StoneCo's Future

In the latest quarter, 4 analysts provided ratings for StoneCo STNE, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $15.38, a high estimate of $18.50, and a low estimate of $13.00. This current average reflects an increase of 24.23% from the previous average price target of $12.38.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of StoneCo among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response 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 navigate through adjustments in price targets, providing estimates for StoneCo's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into StoneCo's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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 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 segment, which includes payments solutions, digital banking, credit, insurance solutions as well as the registry business. In the Software segment solution includes POS/ERP, TEF and QR Code gateways, reconciliation, CRM, OMS, e-commerce platform, engagement tool, ads solution, and marketplace hub. It generates the majority of its revenue from the Financial Services segment.

StoneCo's Economic Impact: An Analysis

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 3M. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 18.08%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.78%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): StoneCo's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.44%, the company may face hurdles in achieving optimal financial performance.

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: StoneCo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.18.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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