StoneCo price target raised by $1 at BofA, here’s why

BofA analyst Mario Pierry raised the firm’s price target on StoneCo to $18 from $17 and keeps a Buy rating on the shares. 2027 net income guidance of more than R$4.3B provided at the investor day in mid-November has “faced significant skepticism” from the market and management’s guidance comes with execution risks, but the analyst is giving management “some benefit of the doubt” while noting that there has been significant turnover of senior management since the company’s failed experience with the credit product in 2019-2021.