Why StoneCo Stock Topped the Market on Tuesday

Why StoneCo Stock Topped the Market on Tuesday

One analyst who was following the Brazilian fintech became slightly more optimistic about its prospects.
What took place on Tuesday was Brazilian fintech StoneCo (STNE 5.12 percent). In contrast to the basically flat S&P 500 index, the company’s share price increased by more than 5%. This rise was sparked by a modest but significant increase in an analyst’s price target.

Therefore, prior to the opening of the market on that day, UBS analyst Mariana Taddeo increased her price target for StoneCo shares from $9.00 to $9.80.

However, the change isn’t significant enough to alter her perception of the stock’s potential; She continues to offer a neutral recommendation.

She didn’t say why she did it right away, but many analysts are cautious about the ups and downs of fintech. That is representative of investor sentiment regarding the sector’s stocks, many of which have suffered in recent months “thanks” to the stifling effects of inflation and concerns regarding the economy as a whole.

Now what? However, the still-young StoneCo’s immense potential is obscured by the general gloom that surrounds fintech and the occasional tepid analyst take. In Brazil, a huge and very populous nation where even basic financial services weren’t common until a few years ago, its numerous services for small businesses and individual customers have really resonated.

StoneCo’s expansion is still fueled by that and an appealing suite of services that is expanding. Leaving aside Taddeo, a number of analysts anticipate that the business will report positive growth figures for the fourth quarter of 2022. They anticipate a fourfold increase in net income per share and a revenue increase of nearly 50% year over year.