As previously reported, Evercore ISI analyst Sheriq Sumar upgraded StoneCo to Outperform from In Line with a price target of $16, up from $10. Base interest rates in Brazil have peaked and consensus points to a potential decline in the second half of 2023 as Brazil’s inflation has started to normalize, reducing margin pressure from rising financial expenses, Sumar tells investors. Meanwhile, he expects StoneCo’s revenue growth to benefit from rising digitization of payments, higher take rates, elevated growth in banking and software, and cross selling, added the analyst, who raised his 2023 EPS estimates to $3.75 from $2.50.
Published first on TheFly
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